Inheritance Tax – Budget 20 March 2013
Inheritance Tax (IHT): nil-rate band
The IHT nil-rate band has been frozen at £325,000 until 2017-18.
Inheritance Tax for non-domiciled spouses
Should a spouse or civil partner be domiciled outside the UK, from 6 April 2013 they can elect to be treated as domiciled in the UK for the purposes of Inheritance Tax (IHT).
The IHT exempt amount for life time transfers from a UK-domiciled individual to their non-UK domiciled spouse or civil partner is at present capped at a life time limit of £55,000. However, this appears to have fallen foul of the EU regulations and so the changes will mean that rules are equalised between domiciled and non-domiciled spouses and civil partners. The IHT nil-rate band which currently stands at £325,000 will become the upper limit for transfer.