Inheritance Tax UK: Current threshold rules likely to affect your IHT Bill

There has been recent speculation the Inheritance Tax rate could rise following the lockdown.

This is because it is thought taxes may be the most efficient way of raising the money to fund the cost of the pandemic.

Robert Pullen, a partner at leading tax firm Blick Rothenberg, said: “The government was already turning its attention to Inheritance Tax, even before the pandemic, and it is likely this is one of the taxes that the Chancellor will use to get money back into the Exchequer.

“Inheritance Tax brings in around £5.5bn per year, and thanks to the fiscal drag of freezing the nil rate band at £325,000, this has resulted in an increase to the number of estates paying Inheritance Tax.”

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