Inheritance tax: Finance Bill update

Inheritance tax: Finance Bill update

Inheritance tax exemptions for death on active service and for medals and awards will be extended but other IHT changes have been postponed.

Partner, Private Client

KPMG in the UK

Contact

Also on KPMG.com

Finance Bill update

Amendments to the IHT manual

The draft Finance (No. 2) Bill 2015 published on 24 March 2015 contains provisions dealing with two of the inheritance tax (IHT) changes set out in the 2014 Autumn Statement.

The existing death on active service IHT exemption, which applies in certain circumstances to the armed forces, is extended to (1) members of the emergency services and humanitarian aid workers responding to emergency circumstances and (2) to constables and service personnel where the person was deliberately targeted by reason of their professional status. Furthermore, the exemption will apply not only to transfers on death but also to prevent potentially exempt transfers becoming chargeable and will stop any additional tax becoming due on any chargeable lifetime transfers in the seven years before death. These provisions will apply to deaths on or after 19 March 2014.

Connect with us

 

Request for proposal

 

Submit

KPMG’s new-look website

KPMG’s new-look website