Chancellor of the Exchequer Jeremy Hunt presented the Autumn Statement to Parliament on 17 November 2022 and confirmed that Inheritance Tax will remain frozen.

Both the Nil Rate Band and Residence Nil Rate Band were frozen at their current values of £325,000 and £175,000 respectively until April 2026 under the former Chancellor Rishi Sunak. These thresholds will now remain frozen for a further two years until April 2028. The Residence Nil Rate Band taper threshold will also continue at £2 million.

The nil rate band has been at £325,000 since 2009. If it had risen in line with inflation, it would today sit at £407,000 and hit over £500,000 by 2027/28!

What could this mean for you?

This means more estates will be caught by the thresholds and could be forced to pay Inheritance Tax.

It’s never been a more important time to receive professional advice on how best to manage your tax and Inheritance Tax situation to avoid your estate paying more than is essential.

What should you do?

If you are keen to find out how Inheritance Tax could impact your estate (and your options to mitigate the same) or if you would like to make your Will, simply Contact Us.