Reforms to Inheritance Tax reliefs: consultation on property settled into trust
Read the full outcome
Detail of outcome
The government is grateful to those who responded to the technical consultation. The summary of responses and government response to the consultation was published on 21 July. It confirms that the government will not proceed with the proposed extension of the related property rules for qualifying property settled into multiple trusts. For other areas of policy design, the government will proceed with the design as originally set out in the consultation document.
The government response document also confirms that:
- the £1 million allowance for agricultural property relief and business property relief will be indexed in line with CPI, but will remain fixed up to and including tax year 2029 to 2030 in line with maintaining the Inheritance Tax nil rate bands at current thresholds
- the longstanding exemption from Inheritance Tax for Scottish Agricultural Leases will be updated to ensure that newer equivalent leases are also exempt
Original consultation
Consultation description
At Autumn Budget 2024, the government announced several reforms to agricultural property relief and business property relief from Inheritance Tax, including a £1 million allowance which will apply to the combined value of property that qualifies for 100% business property relief or 100% agricultural property relief or both.
This consultation document invites views on how the changes will apply to property settled into trust.
Documents
Updates to this page
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A summary of responses to the consultation has been published.
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First published.