By Aidan Grant
The inheritance tax nil rate band has been frozen at £325,000 since April 2009 and the Government appears to have no plans to increase this threshold in the near future. When the increase in house prices in London and the South East is compared over this time period it is small wonder that so many estates are now subject to inheritance tax.
The Government did introduce the new residence nil rate band in April 2017, which provides parents with an additional slice of inheritance tax relief if they leave all or part of a residential property to their children or further descendants. This was designed so that parents could leave up to £1,000,000 between them to their children tax free.