Inheritance tax (IHT) has been a major bone of contention between the main political parties in the last few years.
Now the Conservatives have pledged to raise the threshold for the tax to £1 million should they win the general election on May 6th.
In its 2010 manifesto, the party said the move would help millions of people who aspire to pass on assets to their children.
It said the increase in the nil rate band would be paid for by a flat-rate levy on individuals with non-domicile status.
At present, the threshold above which IHT is charged is £325,000 per individual. Married couples and civil partners can combine their nil rate bands, giving them a joint allowance of £650,000.
Even if the Tories are elected to government and they increase the threshold to £1 million, families may still need to carry out IHT planning, particularly if they have large properties and other assets.
One of the best ways to minimise your IHT liabilities is to write a will to ensure that your assets are distributed in the manner of your choosing. Dying without a will means the state will decide who will inherit your property and investments.
Posted by Christopher Evans
Published on: April 22, 2010