Inheritance tax breaks that allow a deduction from the value of an estate for liabilities owed by the deceased on death are to be restricted in response to avoidance schemes.
The changes will be introduced in the Finance Bill 2013 in response to avoidance schemes and arrangements which exploit the current rules that allow a deduction regardless of whether or not the liabilities are paid after death, or how the borrowed funds have been used, HMRC said.
The government also confirmed that the nil rate for inheritance tax, £325,000 will be...
About Nick Huber
I’m a specialist business journalist and have a particular interest in tax and technology.