The budget 2024, our new Government has decided in it’s first budget to raise further income for the Treasury by increasing Inheritance Tax.
Whilst the rates have not increased the existing allowances (ie nil rate bands), have been extended for a further fixed period of 2 years to 2030
This means that any assets you own which increase in value through inflation may result in a liability to the tax if the existing allowances are insufficient to prevent it
However some new assets, previously free from Inheritance Tax, are to be included in your computations to arrive at the liability to be paid on your death.
Impact on Agricultural Property
From April 2026 on death any owned agricultural property above the value of £1m will be charged to the tax on 50% of its value
Similarly any businesses owned at death will also be included and charged at the same rate as farms
Not only those additions but a further one of unused pension pots has also been included . Mainly, in the private sector where savings have been made into modern defined contribution pensions from which sums can be drawn at a later date any unused amounts will be taken into consideration with other assets on death. This will commence where death occurs after April 2027
Resulting from these changes it is important to review existing Wills, consider gifts during life and consolidate close relationships such as marriage/civil partnerships prior to death