Budget viewpoint: Scrap RNRB and increase the IHT allowance
15 November 2017
All this week the technical experts at Utmost Wealth will be giving us their views of what we might see, or they would like to see, in the Autumn Budget on Wednesday 22 November. Here, Chris Alford, Technical Officer, (pictured), puts forward a radical view on possible Inheritance Tax changes.
Do you agree with Chris’s suggestion? Let us know in the comments below.
One piece of recent legislation that has always baffled me is the Residence Nil Rate Band (RNRB).
In an economy such as ours, surely the vast majority of people liable to pay IHT were homeowners or former homeowners anyway. The RNRB seems to drive everyone considering late-life planning, first and foremost, towards purchasing a house if they haven’t got one already.
Given the messages of fairness and equality that usually bookend each budget announcement, it wouldn’t surprise me to see some change here.
The rules surrounding what qualifies and when, are so complicated that it may be simpler for the Chancellor to announce an overall increase in the Nil Rate Band. This would mean scrapping the RNRB and producing a tax outcome which can benefit all taxpayers.
Perhaps this new limit would not stretch to the eventual £500k level of the RNRB, but a significant increase in the current figure (£325k) could be possible.
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