Rumours of the possible abolition of Inheritance Tax (IHT)

Rumours are circulating in the press of the possible abolition of inheritance tax (IHT) in a bid by the Government to secure the support of wavering Conservative voters. This may cause some individuals to delay IHT planning, but it is important to remember that these are just rumours, and it may not actually happen.

It is worth noting that under the current IHT rules, there are a number of generous reliefs, allowances and exemptions available, and there are many sensible steps which you might wish to take now to reduce the potential exposure of your assets to this tax on death, which we would suggest would be preferable to simply relying on speculation as to possible future changes in the law.

The current rules allow tax planning to be undertaken with a significant degree of certainty, whereas whether what is rumoured here will ultimately come true is far from certain. It is also important to remember that there is likely to be a general election next year so whatever changes are made or announced now by the current Government could well be changed by an incoming Government, whether they be of a different political party or not.

Please get in touch with our expert tax advisors to discuss your inheritance tax planning.