James Ward takes issue with the chancellor’s unjustified attack on deeds of variation
George Osborne’s latest budget was short on any concrete policies dealing with wills, estate administration and succession taxation. However, we were not expecting any substantial changes. We had already been told that the settlement nil-rate band was not going to be pursued by HM Revenue & Customs. We also knew that no increase in the current nil-rate band was likely, as this was a coalition budget and the Liberal Democrats would not have allowed it.
What to expect
We did, however, get a “leaked” insight as to what to expect from the Conservatives in relation to inheritance tax and the nil-rate band, if they win the next election. That is a slight improvement on the current nil-rate band, which was heavily caveated to make better headlines, rather than being a meaningful change in reality. This proposal has already brought much confusion for clients and could lead to an unnatural willingness not to sell the family home at any point, even in the face of a greater need. I foresee
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