TaxPersonal Tax£8,000 rise in inheritance tax nil band

£8,000 rise in inheritance tax nil band

The government has increased the nil rate band for inheritance tax from Pounds 234,000 to Pounds 242,000 to come into effect on 1 April.

Estates with a value exceeding the threshold will be taxed at a flat rate of 40%, with the Treasury estimating this number at 23,000 for 2001/02, or 4% of all deaths.

In the 2000/01 tax year, roughly the same number of heirs paid an estimated Pounds 2bn on their inheritances.

Inheritance tax has come under criticism from a number of organisations, such as the Chartered Institute for Taxation, which says the way it is calculated is unfair, given the continued rise in property prices.

All wealth, including houses and gifts, inherited from a deceased person is subject to inheritance tax if it exceeds the threshold unless it inherited from a wife or husband, in which case it is exempt.

Links

Budget 2001

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

1d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

4m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

5m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

5m Alia Shoaib, Reporter