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.

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