Widening the Inheritance Tax net

Announcements in The Finance Bill on 6 December include changing the inflation measure by which the Nil Rate Band for Inheritance Tax (IHT) is increased from RPI to CPI. 

Katharine Arthur, Tax Partner comments: "This is an approach we’ve seen with increases to other tax bands, but seems irrational for IHT. The CPI excludes housing costs: it is therefore questionable how it relates to IHT. For most families, their house is by far their most valuable asset and the one that will take them into the IHT net in the first place. 

"This move will, through time, bring more and more ordinary families within the IHT net.