Hopes dashed over a £1m IHT threshold

Hopes dashed over a £1m IHT threshold

A number of industry insiders have expressed disappointment that there was no announcement of an expected rise in inheritance tax threshold to £1m in yesterday’s Budget.

The only reference to the reform of inheritance tax in George Osborne’s speech was to a review of the avoidance of inheritance tax through the use of deeds of variation, which will report by autumn.

Rachael Griffin, a financial planning expert with Old Mutual Wealth, said: “The IHT band was frozen at £325,000 back in April 2009.

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“Since then, average house prices have risen by 20.3 per cent, making the current IHT threshold vastly out of date with current property prices, leading to more families being caught by it.”