IHT thresholds would be £270,000 higher if they rose in line with inflation

Growing interest in onshore bonds

Isabel Baxter
clock • 2 min read

Inheritance tax thresholds would be £270,000 higher by the 27/28 tax year if they had risen in line with inflation, Chesnara Life (UK) has set out.

The onshore investment bond provider has calculated that the £325,000 nil rate band for IHT would be set at £537,000 by the 27/28 tax year, while the £175,000 resident nil rate band would be £233,000 if both had indexed in line with inflation, taking them to a combined £770,000 before IHT would be required. Instead, both have been frozen, the nil rate band since April 2009 and the resident nil rate band since April 2020 and will remain at current levels until April 2030 with the result that total IHT nil rate bands for an individual remain at a total of £500,000 where a family home is le...

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