Inheritance tax (IHT)
There was no change to the Inheritance tax threshold of £325,000, which was previously frozen until 2020-1.
The new residence nil rate band also starts to be phased in from 6 April 2017. This additional nil-rate band will be introduced for when a residence is passed on death to a direct descendant. This will be £100,000 in 2017-18, £125,000 in 2018-19, £150,000 in 2019-20, and £175,000 in 2020-21.
The additional nil-rate band will also be available when a person downsizes or ceases to own a home on or after 8 July 2015 and assets of an equivalent value, up to the value of the additional nil-rate band, are passed on death to direct descendants.
There will be a tapered withdrawal of the additional nil-rate band for estates with a net value of more than £2m. This will be at a withdrawal rate of £1 for every £2 over this threshold.
Sugar Levy
The levy rate for added sugar drinks with a total sugar content of 5 grams or more per 100 millilitres will be set at 18 pence per litre, and those with 8 grams or more per 100 millilitres will be set at 24 pence per litre.
Insurance Premium Tax (IPT)
IPT will increase from 10% to 12% from 1 June 2017.
Walker Accountancy 