Inheritance Tax is a tax based on the value of any assets, usually a property, money or investments, that a person leaves when they die.
The threshold had previously been set at £275,000 but Alistair Darling in his Pre-Budget Report (PBR) has now increased that to £300,000, the difference with this amount is that it is transferrable between couples so a married couple or civil partnership would be able to combine inheritance tax to a value of £600,000 if they jointly owned their assets.
The increase should hopefully make a difference, especially as more and more people were having to pay inheritance tax due to the inflated value of property prices that reached over the threshold.
At present there are 40,000 estates that fall over the inheritance tax threshold.
Read the full story at BBC News
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