Mini budget

The Chancellor caused some excitement back in October with his mini budget.  Whilst he has since softened some of the CGT blow, the proposed relaxation of the IHT rules remains intact, for now.  Briefly, the old IHT trap for married couples (whereby they had just one personal nil rate band to offset against their combined assets, with an IHT hit on the second death) has been disarmed.  This means a married couple will be now able to offset two lots of personal nil rate band against their combined estates.  This will take many couples out of the "bunching" net, thereby reducing the need for more elaborately tax efficient wills involving discretionary trusts.
 
The rules are not entirely straightforward, however, nor are they going to be all that easy to apply and there remain good reasons for implementing both life and will tax planning strategies -  not only for simply financial reasons.  On the face of it the new rules will wipe out any IHT issues for couples worth less than 600k, and apply also to civil partners (but not co-habitees). We recommend that everyone should review their personal situation regularly as there is still much scope to get it wrong, leaving the family in a difficult predicament after your death.

Irene or Carol are happy to discuss your circumstances and see where improvements could be made to make things easier for your loved ones and not benefit the tax man following your death.  The cost involved is likely to be more than outweighed by the savings both in tax costs and emotional distress later!  Don’t forget, if you haven’t yet drafted a will, the practise will donate £25 to the Ribble Valley & White Rose Ladies for every will processed by our wills and probate department.

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