Govt to raise IHT nil rate band to £329k

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The Treasury is to increase the inheritance tax (IHT) nil rate band by 1% in 2015/16, to £329,000.

The current IHT threshold has been in place since 2009. It is one of a series of tax changes announced this afternoon by Chancellor George Osborne. He said the threshold for paying the 40% rate of income tax is to rise by 1% in 2014 and 2015 - from £41,450 to £41,865 and then £42,285. Osborne said the move would raise revenue as the increase was not in line with inflation. Meanwhile, the Chancellor said that, from April 2014, he is cutting the main rate of corporation tax by 1% to 21%. Earlier, Osborne said tax relief on the largest pensions will be reduced from 2014/15. The ...

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