Budget 2010 – Inheritance Tax
In the Pre-Budget report the Chancellor had announced that the proposed increase in the Inheritance Tax Nil Rate Band to £350,000 from 6 April 2010 was to be cancelled for the 2010-11 tax year.
The Chancellor has now confirmed that the current nil rate band of £325,000 will be frozen at this level for the tax year commencing 6 April 2010. However, the announcement at this year’s Budget extends this freeze to include all tax years up to and including the tax year ending 5 April 2015.
In previous years, the nil rate band has usually increased annually in line with inflation.