Why Osborne's £1m IHT exemption isn't all good news

Why Osborne's £1m IHT exemption isn't all good news

clock

The Conservative's £1m IHT property exemption was a headline grabber for the government but has actually made estate planning a lot harder, writes Rachael Griffin

The £1m property inheritance tax (IHT) exemption, was a great headline grabber for the Conservative party, however, in reality, all this has done is make IHT a lot more complicated. The ‘main residence nil rate band' as it is known, has added a further ten pages of legislation to the Finance Bill, and added an extra layer of complication to estate planning. A far simpler approach would have been to increase the existing standard nil rate band of £325,000 in line with house price inflation. This could have delivered a greater benefit in ‘real' terms. New main residence nil rate ba...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Estate planning

Late estate planning risks adding billions to govt's IHT coffers

Late estate planning risks adding billions to govt's IHT coffers

Families could face £12.3bn in ‘preventable' IHT

Jenna Brown
clock 03 June 2026 • 2 min read
Octopus Legacy legal arm adds private client team

Octopus Legacy legal arm adds private client team

Grows headcount by around a third

Jen Frost
clock 27 May 2026 • 2 min read
Gifting: Who should make the gift?

Gifting: Who should make the gift?

'Advisers should take a broader view of the family balance sheet'

Ken Maxwell
clock 10 April 2026 • 4 min read