The measure

Legislation will be introduced in Finance Bill 2010 to freeze the limit of the inheritance tax (IHT) nil rate band for the tax year 2010/11 at the current level of £325,000. This freeze had been announced in the 2009 Pre-Budget Report and will now be extended to cover the tax years 2011/12 to 2014/15.

IHT is payable at 40% on the value of a chargeable transfer above the nil rate band.

Who will be affected?

Individuals, trustees and executors and personal representatives of deceased individuals.

When?

The measure will have effect for chargeable IHT events made on or after 6 April 2010 and before 6 April 2015.