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The threshold at which people will have to start paying Inheritance Tax on the estate of a loved one is set to rise by 1% from 2015, Chancellor George Osborne announced in his Autumn Statement last week.

The threshold has been frozen since the Budget in 2010, and currently sits at £325,000. It is now due to rise to £329,000 in the tax year 2015/2016.

Speaking to the Telegraph, Ernst & Young tax partner Patrick Stevens, warned “The increase is two and a half years away, which means that lots more people will be dragged into the inheritance tax net by it.”

It could catch those inheriting even modest houses in the south east of England, he said.

Capital Gains Tax will also see a change – a 1% increase in the annual exempt amount for 2014/2015 (to £11,000) and also in 2015/2016, when it will increase to £11,100.


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