Rewrite your wills! Couples warned as public debt threatens inheritance tax pledge
Monday, October 26th, 2009Published: Sep 26 2009 Source: Stephen Womack, Daily Mail
Families are being urged to take prompt action to cut potential inheritance tax bills amid fears that the precarious state of the country’s public finances could mean an end to generous thresholds. Inheritance tax (IHT) is charged at 40 per cent on legacies, though bequests to a spouse or charity are free of tax and the first £325,000 of any other bequest is tax-free.
Growing public resentment over the increasing number of people forced to pay inheritance tax has pushed the tax up the political agenda. In October 2007, the Conservative party pledged to raise the threshold at which the tax kicks in to £1million, allowing a couple to pass on £2million of wealth between them.
