2010/11 starts with the freezing of the nil rate band at £325k. Tories promise an increase to £1m – but by when?  

Much of the current tax concerns and tax planning focus is on increases in income tax and the removal of pensions tax relief for high earners.

It would be unsurprising, in the light of this, if inheritance tax were not seen as a particularly pressuring tax issue.  Especially in the wake of the battering that all asset class values have taken – although there has, of course, been a significant recovery in values for many of these asset classes through much of 2009.

Some may also have read of the Conservative proposal for a £1m nil rate band if elected so the temptation to ’sit tight’ may be understandably strong for those who are only contemplating giving to save potential IHT.

WEALTHFLOW COMMENT

For those that feel this way about IHT i.e. the ‘no point in acting now’ group, the following should be pointed out:

(i) there is no certainty of a Conservative victory

(ii) Even, if there is, there is no telling when (and even if) the £1m nil rate band will be introduced.

Posted in Uncategorized | No Comments »