HMRC And Excepted Estates

• Published date: 01 November 2021
• Subject Matter: Corporate/Commercial Law, Tax, Family and Matrimonial, Inheritance Tax, Trusts, Wills/ Intestacy/ Estate Planning
• Law Firm: Albert Goodman
• Author: Mr Chris Thorpe

HMRC has announced that the thresholds for excepted estates (i.e. those which pay no inheritance tax and need not complete a full IHT return) will increase from 1 January 2022 in England, Wales and Northern Ireland. The main changes are:

• raising the threshold gross value of an excepted estate from '1million to '3million;
• raising the value threshold of an excepted estate's chargeable trust property from '150,000 to '250,000 although the total amount of trust property including exempt amounts is limited to '1million;
• increasing the value limit in relation to specified lifetime transfers from '150,000 to '250,000;
• amending the definition of 'IHT threshold' to include the unused nil-rate band transferred from the estate of first deceased spouse/civil...