Inheritance tax next Budget

[cs1976]

My father died a over a year ago and grant of probate issued 21st December 2023. The estate has not been fully distributed yet as all the assets have not been sold. Some siblings received their full lifetime gift allowance 335k before his death. The estate will hopefully be finally distributed before the end of the summer and I understand that any tax liabilities will need to be paid by end of October. My query is if anyone can advise that if there is a change to the inheritance tax in the budget 1st October will the new thresholds be applicable or the current ones prior to the budget? Is it worth waiting until the budget to complete the IT38 form to calculate tax due on any inheritance received over the current allowance? Thanks

 

[AAAContributor]

Is it worth waiting until the budget to complete the IT38 form to calculate tax due on any inheritance received over the current allowance?

No.

The 'date of inheritance' is what determines the applicable Group Threshold and the rate of CAT.

The date of grant of probate and the date of sale of estate assets are irrelevant.

The 'date of inheritance' will be the date of death of your father.

Refer to 'Part 8 Self-assessment of Capital Acquisitions Tax (including interest) payable' on page 26 of the Guide to completing the Self Assessment Return (Form IT38) for confirmation of this.

 

[cs1976]

Thanks for that, appreciate it