Inheritance Tax and the Election

partyleaders

Inheritance tax and government

 

Inheritance Tax 2015

Final Duties has taken a look at the manifestos of the main political candidates in order to understand their positions on inheritance tax (IHT)

Current Inheritance Tax Allowances

The current rate of Inheritance Tax and allowance is £325,000 with 40% tax paid on assets above £325,000.  This mean if your esate was worth £500,00 then you would pay £70,000 in tax. Your inheritance after tax would be £430,000.

There are various things that can affect the amount of IHT paid on an estate and if unsure of your liability you can use our free advice line.

What The Conservatives Promise if Elected

We have guaranteed that ISAs can now be passed on to a spouse tax-free, so that from this April they are no longer subject to Income Tax and Capital Gains Tax. We have bolished the 55 per cent tax on pension pots, so that when the deceased is 75 or over any beneficiary only has to pay their marginal Income Tax rate – normally 20 per cent – when they draw down the pension. And we have enabled anyone who dies before the age of 75 to pass on their pension pot completely tax-free, so that beneficiaries will pay no tax on pensions they inherit or on the income they draw down. And we will take the family home out of tax for all but the richest by increasing the effective Inheritance Tax threshold for married couples and civil partners to £1 million, with a new transferable main residence allowance of £175,000 per person. This will be paid for by reducing the tax relief on pension contributions for people earning more than £150,000.

https://s3-eu-west-1.amazonaws.com/manifesto2015/ConservativeManifesto2015.pdf

What UKIP Promise if Elected

Ukip’s Inheritance Tax pledge is easy to understand. IHT will be abolished by 2015

https://d3n8a8pro7vhmx.cloudfront.net/ukipdev/pages/1103/attachments/original/1429295050/UKIPManifesto2015.pdf?1429295050

What The Labour Party Promise

They make no mention in their manifesto

What The Green Party Promise

They make no mention in their manifesto

What Plaid Cymru Promise

They make no mention in their manifesto

What the SNP Promise

They make no mention in their manifesto

If you are an executor of an estate and legaly responsible for inheritance tax issues you can find more information in our executor section.