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.”
Follow us on twitter: @kpmguk #Budget2016
For further information please contact:
Roger Newby, FTI Consulting
M: +44 (0)7894 093 892
KPMG Press office
T: +44 (0) 207 694 8773
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.