Inheritance tax and the Spring Budget

Sussex_Mike

I am one of two executors and one of the beneficiaries of the estate of a friend who died in November.  There is inheritance tax to be paid.  There is talk of changes to inheritance tax in the Spring Budget.  My understanding is that we have 6 months to pay inheritance tax before we start paying interest.  Is there a possibility that the tax liability would change if we held off until after the budget or should we just go ahead and pay it now and get probate started?

JGB1955

I would think there is zero chance of any change being back dated...

user1977

The tax rate is never going to be determined by when you decide to pay it, and there's no good reason for changing it in relation to deaths which have already occurred.

If there's any change to IHT, it will (almost certainly) be effective for deaths from some date in the future.

Keep_pedalling

Any changes in the IHT rules is highly unlikely to be made retrospective it certainly was not  for the RNRB. Anyway I am sure this wont be introduced before the next GE, the Tories will more likely to say they will do it only if we are stupid enough to reelect them. 

km1500

the other things you consider is irrespective of any budget changes should you pay the tax now or wait for six months?

I suppose it depends on what kind of assets there are for example if it is just cash in the bank then why not take advantage of the interest you would get by waiting

however if for example there are houses to be sold then it might not be a good idea to leave a house empty for 6 months before putting it on the market, unless you think prices will rise by then

Jowwie

Whilst I think it should be scrapped like it is in Australia I doubt it will now. Political dynamite for the opposition parties just before GE. Public perception is IHT is a tax on a small minority of very wealthy people. No longer the case in my opinion, but if this was the only significant tax cut in April there would be public uproar.

Sussex_Mike

Thanks all.  That was my instinct, but it is a lot of money, so thought I would ask.