Renewed calls for scrapping of inheritance tax

By Lenore Rice

There have been renewed calls for the abolishment of inheritance tax after it was revealed that 28,000 families in Northern Ireland and the rest of the UK were being hit by large tax bills as a result of unfortunate timing.

The estates in question involve properties in areas with rising house prices, and the death has taken place after the new inheritance tax allowance was announced, but before it has actually been implemented. As a result, some of those estates will pay inheritance tax of up to £80,000. There have been calls for the new residential allowance to be applied retrospectively from the date it was announced, which would in the case of many of the 28,000 families result in no inheritance tax being paid at all. Campaigners are however asking the government to go further, and to scrap the so-called 'death tax' altogether.

From April 2017 homeowners will be able to bequeath an extra £100,000 each - £200,000 per couple. That will be in addition to the current £325,000 allowance for all estates. Once the threshold is passed inheritance tax is payable at 40 per cent.

If you require legal advice in respect of inheritance tax, writing a Will, estates, or any other probate related matter, contact Wilson Nesbitt in Belfast or Bangor by calling 0800 840 9293.