IFAs to benefit from IHT nil rate transfer confusion

In his pre-Budget report, the Chancellor announced that for deaths on or after 9 October 2007 it will be possible for spouses and civil partners to transfer their unused inheritance tax nil rate band allowances. This means that any part of the nil rate band that was not used when the first spouse or civil partner died can be transferred to the surviving spouse or civil partner for use on their death. In tax year 2008/2009 a maximum of £624,000 is available. However, AXA warns many couples in today’s society are unaware they will not benefit at all as they must be married or civil partne...