The measure

The nil rate band for inheritance tax is increased automatically each year in line with inflation unless an alternative nil rate band is provided for. Legislation will be introduced in Finance Bill 2010 such that there will be no automatic increase to the nil rate band for 2010-11 and to set the limit of the inheritance tax nil rate band for 2010-11 at the current level of £325,000.

Who will be affected?

Executors and personal representatives of people who have died, individuals and trustees making chargeable lifetime transfers.

When?

Will have effect for chargeable inheritance tax events made on or after 6 April 2010.