Although the Chancellor has set in motion a review of inheritance tax there seems little chance of any reforms being enacted in the near future. Any worthwhile reform will be controversial and the government’s obsession with Brexit and its lack of a working majority are pretty much guarantees that any recommendations, which might come out at a review, will sit in the long grass.
We are therefore saddled with the current complex tax and, in particular, the ridiculous and unfair additional residential nil-rate band (RNRB) with its annual increments of £25,000.
There have been recent reports in the press that some estates have been paying too much tax because the executors were unable to get to grips with the complexity of the RNRB. The extra tax at stake can run into tens of thousands of pounds. It is therefore essential that professional advice is taken where the extra allowance might be available.