Jo Bateson, Tax Partner at KPMG, comments on the changes to inheritance tax.
Commenting on the changes to inheritance tax, Jo Bateson, Tax Partner at KPMG, commented:
“Families who hold assets of historic or national importance potentially face an increased inheritance tax bill today following today's Budget.
“A relief has been available since the introduction of inheritance tax which protects assets of national importance from being sold off to meet inheritance tax liabilities. Generally, inheritance tax liability is deferred provided that the asset is well maintained, available to the public to view and is not sold. When any of these conditions are no longer met, an inheritance tax liability arises typically at 40%. Following today's announcement this could now be as much as 83% being the Estate Duty rate payable in the late 1970's.
“The policy costings indicate that they expect the impact of this measure to be negligible, so the detail expected next week in the draft Finance Bill will hopefully provide more clarity.”
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