UK inheritance tax update

In spite of rumours that UK inheritance tax would today be adjusted in the Chancellor's Autumn statement, which ranged from it would be completely abolished to it would at least be reduced, Jeremy Hunt has in fact left it at 40% on everything above the Nil Rate Band (£325k) or Residential Nil Rate Band (£500k).

Many see inheritance tax as a deeply divisive tax because it is effectively taxing people on being frugal and saving money when tax has already been paid on the earnings of the deceased individual's estate with tax then being applied to the net amount after that tax which had been paid and simply ''saved''.

So unfortunately, this tax will be with us for some time to come and, if a new Labour Government comes into power next year, we can expect it to be around for quite a few more years yet.

As such, all and every existing legal inheritance tax mitigating strategy currently in existence should now be seriously considered for implementation, not least of which would be Nil Rate and Residential Nil Rate Band Trusts to prevent inheritance tax from being applied to the same asset over and over again, generation after generation.

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