Emergency Budget 2015 - Inheritance tax changes announced
What are the announced changes to IHT?
- Currently an individual can pass on assets of up to £325,000 free of IHT
- From 2017 a 'family allowance' of £175,000 will be added increasing the existing threshold to £500,000. The £175,000 applies to a person's main residence when it is left to children or grandchildren. Initially the main residence inheritance tax relief will start at £100,000 in April 2017 and will rise to £175,000 by 2020/21
- As any used relief can be passed on to a spouse or civil partner this effectively means that £1 million of a couples' wealth can be passed on free of tax
How many people in the UK pay inheritance tax?
- In 2013 the amount of tax collected through IHT was £3.4 billion, almost double the total of Income Tax collected
- The highest total of IHT raised in one year was achieved in 2007 with £3.8 billion raised
- Around 3% of estates pay IHT on an average estate worth just under £1million
£200 Pension Cashback Offer
Make a qualifying deposit or transfer a pension to our partner Interactive Investor.
- Deposit or transfer a pension of at least £20k and you could earn £200 cashback
- Terms and Fees apply, Capital at risk
- New & Existing customers opening a SIPP
- Offer ends 30th June 2026
Before starting your transfer, check you won't lose any valuable benefits (such as guaranteed annuity rates or a lower protected pension age) and find out what exit fees you might have to pay
Provided by our partner
