<b>Budget 2006: </b> Inheritance tax thresholds rise. By John Newth

Posted by AccountingWEB PM | on Wed, 22/03/2006 - 16:49 4082 1 comment

The chancellor has announced increases in the inheritance tax exemption limit.

The exemption limit will rise by stages from £275,000 in 2005/2006 to £325,000 in 2009/2010.

The new exemption limits and the percentage increases from the previous year are as follows:

2006/2007 £285,000 - 3.63%
2007/2008 £300,000 - 5.26%
2008/2009 £312,000 - 4.00%
2009/2010 £325,000 - 4.16%

These increases are, of course, very welcome, but their true impact depends on whether house prices increase or decrease in the next few years.

Continued...

budget - am descretionary trusts

AnonymousUser | Thu, 23/03/2006 - 12:25 | Permalink

say, 100,000 pounds from existing am descretionary trust which has been paying its periodic charge for last 30 years is payed to beneficiary absolutely towards purchase of house.

last 10 year periodic charge payed 5 years ago.

what will be tax on the 100,000 on distribution?

will trust or beneficiary be paying the new tax?

trust has assets well in excess of that amount.

hope mr.brown hasleft his budget to have this question easily explained!