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Liverpool Solicitors News: Election Result Clears the Way for Inheritance Tax Reform

Fewer people than before will be made to pay Inheritance Tax under changes that are set to be introduced under our recently elected Government.

The Conservative Party had pledged in their election manifesto to increase the threshold for Inheritance Tax from £325,000 to 1 million. They had fought the 2010 election making a similar proposal, but this had to be dropped when they signed into a coalition agreement with the Liberal Democrats.

Now that an overall majority has been secured, the Prime Minister has the authority to implement the changes. He stated “you want to know that even after you are gone, when you are not on the phone and not physically there, you can still provide for your children.” as backup as to why he wants to act upon inheritance.

It has long been said that Inheritance Tax, introduced in 1986; needed to be reformed. It was originally aimed at Britain’s wealthiest residents. The rising cost of house prices meant that an increasingly large number of families with modest- size estates were hit by the 60% levy.

If the threshold is to be raised, there will be clear implications for estate planning as only the largest will still be eligible to pay the tax.

Ministers have said they will fund the new arrangements by removing the top rate of pension tax relief.

Here at your local Liverpool Solicitors we can provide specialist advice to individuals regarding protecting your wealth and assets for the future.

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