Cameron says inheritance tax cut will have to wait

By Lenore Rice

Prime Minister David Cameron has warned that an increase in the threshold at which inheritance tax becomes payable may have to wait until after the General Election in May 2015.

Mr Cameron spoke to a group of pensioners and older workers about the impending reform, telling them that "inheritance tax should [only] be paid by the very wealthy", and that middle-class families should be free to pass on their home as an inheritance to their children without paying the so-called 'death tax'.

More people are being caught in the inheritance tax net as a result of rising property prices, particularly in areas of England. Couples have more chance of escaping the tax as spouse's can pass their allowance on to each other in the event of their death. So while the threshold at which inheritance tax is currently payable is £325,000, a couple can have an estate worth just under £650,000 to pass on to their remaining family without paying any inheritance tax. Single or divorced property owners are therefore at a higher risk of having to pay the tax, which is paid at 40 per cent.

If you require legal advice about making a Will, inheritance tax, gifting, powers of attorney, estate planning, or any other matter, contact one of the probate solicitors at Wilson Nesbitt in Belfast by calling 0800 840 9293.

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