Old Mutual Wealth calls on Hammond to raise IHT limit

Old Mutual Wealth is hoping for a revision of the inheritance tax allowances in next week’s Budget, to be delivered on Wednesday by Chancellor Philip Hammond.

Tax and financial planning expert Rachael Griffin says she is “not expecting much” from the chancellor of the exchequer in his first – and potentially last – Budget speech.

She says: “He isn’t the same style of showman as is his predecessor and is more likely to steer a steady ship rather than rock the boat.”

That said, her primary request would be a review of the IHT threshold, which she believes is long overdue.

She says: “There is a good case for the £3,000 limit to be increased after 35 years of stasis.  The allowance on gifts has not been increased since 1981. That means it would be worth over £10,000 had it tracked inflation.”

Further, she is expecting him to “continue the trend” of focusing on tax avoidance, adding he may also propose changes to Qrops.

“He could also announce amendments to qualifying recognised overseas pension schemes. In the Autumn Statement the Chancellor announced the tax treatment of foreign pensions will be brought closer in line with the UK’s domestic pension tax regime. He is likely to use the Spring Budget to announce some tweaks to the criteria.”