Inheritance Tax
(asked on 26th February 2018) - View Source
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what recent estimate he has made of how many people and estates will benefit as a result of the changes to inheritance tax thresholds announced in Budget 2015 in the (a) 2017-18, (b) 2018-19, (c) 2019-20 and (d) 2020-21 fiscal year.
At Summer Budget 2015, the government announced the introduction of a ‘residence nil rate band’ for inheritance tax when a home is passed on death to a direct descendent. It will start at £100,000 in 2017-18, increasing in £25,000 increments to £175,000 in 2020-21. This, in addition to the existing nil rate band of £325,000, will increase the inheritance tax free threshold to £500,000 for many individuals, and up to £1 million for many married couples and civil partners by 2020-21.
The estimated number of estates that will benefit as a result of the residence nil rate band are in the table below:
Year | 2017/ 18 | 2018/ 19 | 2019/ 20 | 2020/ 21 | 2021/ 22 |
Estimated number of estates benefitting from the residence nil-rate band phased in from 2017 (000s) | 30 | 31 | 32 | 34 | 36 |