No change to inheritance tax following the Autumn Statement on 22 November 2023

It was very disappointing that there were no changes to the current inheritance tax regime despite the rumours that the rate of tax was set to be reduced.  In fact, inheritance tax was not even mentioned.

Fresh reports indicate that the bad press surrounding the rumours of cuts may have influenced the Chancellor’s decision.  During a cost of living crisis, it was being negatively reported as a relief for the wealthy despite the reality being that inheritance tax is now affecting more Estates than in previous years.

The current nil rate band of £325,000 has been in place since 2009 and is frozen until 2028.  The Residence Nil Rate Band of £175,000 has not been increased since 2020 and is also frozen until 2028.

The lack of increase of the allowances is essentially a stealth tax due to the increase in the value of assets and the resultant increase in the number of Estate affected.

The current inheritance tax system is complex, and even a reform to simplify this would have been welcomed but has been overlooked once again.

Taking expert advice in relation to Estate planning during your life, and your Estate engaging expert Probate Practitioners ensures that all possible tax mitigation is ensured.