Budget 2010 ? Inheritance Tax: More Bad News For Homeowners
Wednesday, 24 March 2010

The Chancellor announced today that the IHT nil rate band will be frozen at ?325,000 until 2014/15.

This represents a back-track on the ?350,000 threshold previously announced.

A husband and wife each have one nil rate band. In his 2007 Pre Budget Report the Chancellor announced spouses could transfer nil rate bands. This meant on the second death the nil rate band would be ?650,000, taking most houses outside the tax.

David Kilshaw, partner at KPMG, said: ?By freezing the nil rate band for the next four years, the Chancellor has put the teeth back into inheritance tax. Many middle class couples will once again fear for their homes and have to sell to pay the tax.?

?Add in the higher stamp duty charge on ?1 million plus homes and this is a sad day for many homeowners.?.