Articles about solicitors and legal services

Inheritance tax threshold held at £325,000

The individual inheritance tax threshold is to remain unchanged at £325,000.

The Government had originally intended to increase the allowance to £350,000 from next year but that plan has now been scrapped because of the recession.

Making the announcement in his pre-budget statement, the Chancellor, Alistair Darling, said: "I do not believe that raising this allowance can be a priority, given the impact of the downturn on the country's finances. So I have decided to freeze the individual allowance at £325,000 for the next year."

The announcement will be a disappointment to many people and highlights the need to plan ahead in order to ensure that as much of your estate as possible is passed on in a tax efficient way to your beneficiaries.

Government announcements on inheritance matters often prompt people to review their wills, trusts and overall financial arrangements. A little careful planning now can prevent thousands of pounds being wasted in the future.

Please contact us if you would like more information about wills, trusts and any matter relating to inheritance planning.

If you wish to make an appointment, or ask us a question please contact us.