The Chancellor this week resisted calls to make further changes to the UK’s controversial Inheritance Tax (IHT) regime.
Philip Hammond had been urged ahead of the Budget to take another look at the current system, amid concerns that changes set to come into force in a few weeks’ time don’t go far enough.
From April 6th, changes to the nil-rate-band will mean individuals will receive an additional £100,000 tax-free, on top of the £325,000 allowance already available.
The allowance for married couples or those in civil partnerships will also edge up to £650,000.
These reforms, which were announced by Mr Hammond’s predecessor at the Treasury, George Osborne, were a response to concerns about the impact of rising house prices and the number of extra families finding themselves dragged over the IHT threshold.
In spite of the imminent reforms, many had hoped that the Chancellor could also be persuaded to review the annual gifting threshold.
This enables individuals to pass on £3,000 in assets over the course of a 12 month period; a legitimate means by which someone may reduce the size of their estate.
However, critics have pointed out that the threshold was set in 1981 and – had the amount been allowed to rise with inflation – would now stand at around £10,000.
Despite hopes that this discrepancy might be addressed, Mr Hammond chose not to announce any additional changes when he stood to address the Commons on Wednesday.