Tax Overview
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Married Couples Allowance
The demise of the married couple's allowance had been widely noted, not least because the rate of relief had now fallen to 10%. Mr Brown confirmed that the married couple's allowance disappeared from 6th April 2000, adding an extra £197 to most couple's tax bills. However, the special married couple's age allowance will remain, provided at least one spouse was born before 6th April 1935.
Inheritance Tax (IHT)
At a time when double digit rises in property prices are being widely reported, the nil rate band for inheritance tax was increased to £275,000. However, in many parts of the country, that exemption does not even cover a family home.
Mr Brown made no other revisions to inheritance tax. In his seventh Budget with no radical change to IHT, it seems likely that the Chancellor has decided to live with the current regime rather than undertake the reforms many commentators had long predicted. The stability of the tax structure means that now is a good time to review your IHT planning strategy.
If you arranged Life cover some years ago to protect your Estate, it may have to be reviewed to cope with the rise in property and investment values and the more competitive life rates now available.
