Summer Budget 2015: IHT threshold rises to £1m

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The chancellor George Osborne has announced that the threshold for inheritance tax for a couple will rise to £1m.

The rise will come through a new home allowance worth £175,000 for the family home, per person, added to the amount inheritable tax free already this brings the limit to £1m.

The news had been expected, when the plans were first announced, Rachael Griffin, Financial Planning Expert at Old Mutual Wealth, said: "A house is very often the most valuable asset a family holds and the ability to pass on some value to the next generation is high on the priority list for many in retirement.

"With IHT thresholds as they are, many more families could find themselves hit with large tax bills on receipt of an inherited property.

"If the Conservative plans to introduce an additional allowance for property are introduced, more of them will be able to pass down their family homes in full, without the need to sell or downsize.

"This may have the dual appeal of allowing more retirees to remain in the family home, while also reducing the numbers of them competing with first time buyers for smaller homes."

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