Planning For The Future -- I

Unlike in previous years the general view ahead of the March 2001 Budget was that with a general election pending few if any changes would be made to inheritance tax. This view was borne out with the announcement by the Chancellor that the only proposed change was an increase in the nil rate band to £242 000.

Although no major changes to inheritance tax have been made at all by this Government estate planners and their potential clients must avoid complacency. It would therefore be prudent to continue planning on the basis that the attractions of the current rules may be restricted should the Government be re-elected.

Some five years ago the Labour Party was very critical of the lack of bite of the inheritance tax régime. In particular it was not happy with the following areas:

• the potentially exempt transfer rules;
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