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Changes to inheritance tax announced in the 2015 budget - what do they mean? our lawyers explain


Inheritance tax (IHT) does not begin to affect an individual’s estate until the value of his or her estate is over £325,000. Once an estate surpasses this value, the proportion of the estate above this nil-rate band becomes subject to IHT of 40%. The only exception to this is in the context of married couples and civil partners, whereby the nil-rate band threshold can be transferred. When this happens the survivor’s nil-rate band threshold doubles to £650,000. However, above this value the survivor’s remaining estate too becomes subject to IHT of 40%.

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