Pre-Budget Report – Inheritance Tax Nil rate band frozen
The Chancellor has announced that proposed increase in the Inheritance Tax Nil Rate Band to £350,000 from 6 April 2010 is to be cancelled.
Instead the current limit of £325,000 will continue to apply for the 2010-11 tax year. The nil rate band is usually increased annually in line with inflation.
The Chancellor justified his move to freeze the increase saying "I do not believe that raising this allowance can be a priority, given the impact of the downturn on the country’s finances. So I have decided to freeze the individual allowance at £325,000 for the next year".