New Chancellor, New Inheritance Tax Threshold?
Last month, it emerged that George Osborne did not resign his post as Chancellor of the Exchequer but was instead sacked by Theresa May to make way for former foreign secretary Philip Hammond.
The Prime Minister distanced herself from David Cameron’s administration in her first address as she signalled Mr Osborne’s departure. Her speech stated that she would “fight against burning injustice” and create “a country that works for everyone”.
Cost fluctuations plagued the reign of Cameron’s government; inconsistency ruled. With George Osborne remained controversial for the duration of his tenure. However, it is interesting to note that Osborne did not increase the inheritance tax threshold during his six years as exchequer. This threshold signals the amount beneficiaries receive tax-free, before hitting a 40% rate levied on property and money acquired by gift or inheritance.
The 2010, £325,000 threshold remains in place today. Recently released figures show that the government made an eye watering £4.7bn from inheritance tax in 2015-16, compared with £2.7bn in 2010-2011; Osborne’s first year as Chancellor.
We cannot help but wonder whether May’s new government will end the freeze on inheritance tax thresholds.
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If this cost-effective service sounds of benefit to you, Will Protect can help. If you’d like to discuss specific services, or if you would just like an informal chat on how we could improve your savings, get in touch with our team on 0845 8948 441.