New analysis suggests the thresholds for inheritance tax should be over £250,000 higher by 2028.
This analysis comes from Chesnara Life UK, the life assurance and pension provider. It shows the thresholds for inheritance tax should be £270,000 over what they currently are by the tax year 2027/28. This is if they were rising to match inflation. If this was the case, the nil rate band would stand at £537,000 by this point. Meanwhile, the resident nil rate band is set to rise to £233,000. It is set at £175,000 right now.
This would lead to a combined inheritance tax threshold of £770,000, which would significantly reduce the number of people who are liable. The government has frozen the thresholds and has indicated they will stay this way for another four years.
The fact they have not risen in response to inflation means that more families are having to pay inheritance tax out of their estates. This makes it essential to have Probate solicitors in North Wales who can handle the necessary tax planning and payments.
Mark Lambert works for Chesnara Life UK as its onshore bond distribution head. Speaking to Today’s Wills and Probate, he emphasised the importance of preparing for inheritance tax. Then he added:
“The inclusion of unused pension funds in estates from April 2027 will add to that pressure and is already having an impact as advisors and clients look for strategies.”
For solicitors in North Wales who can deal with all aspects of estate administration, contact Bennett Smith Solicitors right away.
