Amidst mounting speculation about the forthcoming Autumn Budget, people inheritance tax planning in Cheshire will be wondering if there are likely to be further changes.
Certainly, a new survey has shone light on public attitudes towards inheritance tax (IHT). The recent poll by YouGov found that 54% of people want it abolished, with 76% oppose increasing the existing IHT rate, and 67% in favour of increasing the £325,000 tax-free threshold.
The question now is the extent to which, if any, the Treasury shares public opinion. The Chancellor of the Exchequer, Rachel Reeves, may opt to retain current thresholds but tighten exemptions. Elsewhere, there may be a reduction in the £325,000 nil-rate band or the £175,000 residence nil-rate band. There could be limits imposed on agricultural property or business reliefs, or a new policy on how pensions are classified within estates. There could also be caps on gifting, adjustments to tapering, or an end to the nil-rate band for primary residences.
The poll found that most taxpayers haven’t taken sufficient measures to minimise their potential liability. Over three quarters of those surveyed said they had either not considered or rejected professional financial advice. This is in spite of an increasing number of estates being liable for IHT.
Financial experts stress that it is no longer just the very wealthiest households impacted. Thresholds have been frozen since 2009, so more families have been drawn into the IHT net as pension pots and property values haveincreased. With a potential further shakeup of IHT on the cards, anyone estate planning in the UK should now be seeking independent financial advice.
