Chancellor's Autumn Statement - 05.12.12

Royds Private Client department was interested to learn of the 1% increase in the inheritance tax nil rate band - from April 2015.

Some sources report this increase as coming into effect next year, but the Treasury and HMRC confirm that the nil rate band will remain frozen, as it has been since April 2009.

This announcement replaces the previous decision to increase the nil rate band in line with the Consumer Prices Index from April 2015.

As of April 2015, an individual will be able to leave £329,000 (instead of £325,000) free of inheritance tax upon their death, or spouses/civil partners will be able to leave £658,000, if their nil rate band has not been used up by lifetime gifts. This rise is not as generous as historical increases in the nil rate band until 2009, nor as generous as it would be under the CPI inflation rate.

The...