The threshold at which people will have to start paying Inheritance Tax on the estate of a loved one is set to rise by 1% from 2015, Chancellor George Osborne announced in his Autumn Statement .
The threshold has been frozen since the Budget in 2010, and currently sits at £325,000. It is now due to rise to £329,000 in the tax year 2015/2016.
Speaking to the Telegraph, Ernst & Young tax partner Patrick Stevens, warned “The increase is two and a half years away, which means that lots more people will be dragged into the inheritance tax net by it.”
It could catch those inheriting even modest houses in Edinburgh , he said.
Capital Gains Tax will also see a change – a 1% increase in the annual exempt amount for 2014/2015 (to £11,000) and also in 2015/2016, when it will increase to £11,100.