Thresholds and rates

The starting point for IHT will be £285,000 from 6 April 2006 (2005/06: £275,000), an increase above the rate of inflation. The Chancellor announced that the limit will rise to £300,000 on 6 April 2007, £312,000 in 2008 and £325,000 in 2009 - making the assumption that there will be no change of government policy in the meantime. At these levels, it is estimated that only 6% of estates will pay IHT.