Scherzade Burden, Registered Foreign Lawyer (England and Wales)
If you are a UK domiciled person and own property up to £1m you will be delighted when George Osborne, Chancellor of the Exchequer, today announces that the nil rate band for IHT which has been frozen at £325,000 since 2009 is to go up significantly.
Today, if you are a single person, your estate will be taxed 40% on everything you own above the “nil rate band” which is currently set at £325,000. As a married person, the law permits double this allowance so only after £650,000 is tax triggered.
As a response to increasing property prices in the UK, the Chancellor is set to raise the nil rate band to £500,000 for individuals and £1m for married couples.
Although the changes will not be effective until 6th April 2017, there is likely to be a significant impact on how you manage your wealth and estate planning matters.
About OLN’s Estate Planning Practice:
The department, prides itself on giving bespoke advice to clients with cross-border challenges. As a result of the department’s numerous contentious matters we can assist to ensure that your estate planning does not fall prey to the pitfalls and risks inherent in our probate system in Hong Kong.
OLN is a Hong Kong law firm with extensive experience in cross-border succession planning. If you would like to discuss any UK specific issues please contact Scherzade Burden.