Rates and threshold

Reducing the burden of IHT is traditionally a Conservative priority. The Coalition Agreement has relegated this below other objectives, and Mr Osborne's first Budget contained no mention of IHT at all. This means that, on the basis of the measures previously announced, the nil rate band for transfers will be held at £325,000 for the next five years to 2014/15, bringing more estates into the charge to tax each year. However, this may be reviewed when the outcome of other measures becomes clearer.

Rates of tax remain unchanged at 40% (death transfers) and 20% (lifetime chargeable transfers).