As rumours that the prime minister may call for an election in November this week, there is a possibility that the chancellor of the exchequer may publish the pre-Budget report and spending review in the same period.
Edinburgh-based life insurance and pension company AEGON has stated that it is possible that a large increase on the inheritance tax (IHT) nil rate band from £300,000 may be announced – but leaving the home outside the tax net.
Other possibilities include a change in the period for which IHT can apply to gifts from the current period of seven years to a decade and a reduction in the amount of time it takes for a non-domiciliary to be deemed to be UK domiciled and become liable to the tax on their worldwide assets
A possible reduction in the nil rate band, paired with taking the home outside the IHT net may also take place, according to the company.
In his last Budget as chancellor, Gordon Brown suggested that the IHT nil rate boundary should be raised to £350,000 by 2010.