Everything You Need To Know About Inheritance Tax in 2025
As families prepare to pass on their legacies, the looming complexities of Inheritance Tax (IHT) in 2025 prompt a closer look at new regulations. With rising property values and freezing thresholds, many households find themselves increasingly affected by IHT. The changes enacted in 2024 are just the beginning, and understanding these rules is vital for effective estate planning. Let’s explore what the upcoming year holds, as explained by professionals offering inheritance tax advice in London . 1. No Immediate Cuts in Sight 40% IHT Rate Remains — The prevalent IHT rate has not changed, keeping financial burdens steady. Frozen Thresholds - Nil-Rate Band: Stays at £325,000 since 2009. Residence Nil-Rate Band (RNRB): Maintains at £175,000, allowing a couple to pass on up to £1 million tax-free. 2. Stricter Rules for AIM Shares Tightened Eligibility — Fewer AIM shares qualify for Bu...