HMRC And Excepted Estates

HMRC has announced that the thresholds for excepted estates (i.e. those which pay no inheritance tax and need not complete a full IHT return) will increase from 1 January 2022 in England, Wales and Northern Ireland. The main changes are:

• raising the threshold gross value of an excepted estate from £1million to £3million;
• raising the value threshold of an excepted estate's chargeable trust property from £150,000 to £250,000, although the total amount of trust property including exempt amounts is limited to £1million;
• increasing the value limit in relation to specified lifetime transfers from £150,000 to £250,000;
• amending the definition of 'IHT threshold' to include the unused nil-rate band transferred from the estate of first deceased spouse/civil partner;