Tag: inheritance tax

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Inheritance tax Review will Uncategorized Wills

Inheritance Tax and Domicile

It is important to review wills regularly to take into account, amongst other things, any changes in legislation.

Currently, UK Inheritance Tax is a domicile-based system. A government Policy Paper originally published on 29th July stated that the government intends to replace this with a new residence-based system from 6 April 2025. Another document published by the government on 31st July stated that officials will seek further feedback through a series of separate engagement sessions on Inheritance Tax with confirmation of the final design of these policies to be published at Budget.

The next Budget is due to take place on 30th October 2024.

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Inheritance tax

UK Inheritance Tax – Autumn Statement 2022

Today, the Chancellor of the Exchequer set out that the inheritance tax nil rate bands will stay fixed at current levels until April 2028.

The nil rate band will continue to be at GBP 325,000. The residence nil rate band will continue to be at GBP 175,000. The residence nil rate band taper will continue to start at GBP 2 million.

This is subject to legislation being passed.