The Chancellor’s Pre-Budget Report in October 2007 introduced the concept of the transferable ‘nil-rate band’ for spouses and civil partners for the first time and, although the new rules will not be confirmed formally until the Finance Act 2008 receives Royal Assent in July 2008, no further changes were announced in the Budget on 12th March.

The new rules mean that the unused percentage of the nil-rate band on the first death is transferred and applied to the nil-rate band in force at the date of second death. The nil-rate band is currently £300,000 for 2007/8 and the Chancellor confirmed in his Budget that the rate will rise to £312,000 for 2008/9.  Download our guide to the Nil Rate Band and it its implications here.

It is important to note that there is no need to make any immediate changes to an existing will. However, it is still essential to have a will and to keep it under review to make sure that your wishes are carried out.

Of course, wills are only the start of what we could do for you. Despite the Government having given much attention to Inheritance Tax in recent years, there are still many planning opportunities available. We have Scotland’s largest trust and tax practice featuring some of the country’s leading practitioners to help you make the most of them.

To find out how you could reduce your Inheritance Tax liability, please contact your Turcan Connell Partner or one of our trust and tax specialists listed on this page.