As reported by BBC News, it is believed that the government are looking to increase the amount of money it receives through inheritance tax at this year’s Autumn Budget.

About 4% of all deaths result in an inheritance tax charge on the deceased person’s estate. This raises approximately £7billion each year for the government.

Whilst it is not known exactly what changes the Chanceller is expected to announce, it is understood that multiple changes to the current inheritance tax regime are being considered.

All eyes will be on the Chancellor when she gives the Autumn Budget on Wednesday 30th October.

The current rules are that each individual has an inheritance tax nil rate band of £325,000 (less any gifts they have made in the last seven years of their life). Anything above that threshold is taxed at 40%.

There are also additional reliefs and exemptions, such as the residence nil rate band which can potentially add a further £175,000 to an individual’s inheritance tax nil rate band, as well as spousal and charitable exemptions, Business Property Relief and Agricultural Property Relief, which could be utilised to mitigate tax on a person’s estate when they die.

At Eaton Smith Solicitors, our experienced team is able to advise clients regarding their estate planning to assist them to mitigate the potential tax liability on their estate.

If you would like to discuss your estate planning, please do not hesitate to contact Eaton Smith on 01484 821300 and ask to speak with a member of the Wills and Probate team.