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8 JULY 2015


There will be a new cap on the total investment a company

may raise under VCTs, EISs and other risk finance investments

of £20 million for knowledge intensive companies, and £12

million for other companies.


A higher 500 employee limit will apply to knowledge intensive



Venture capital funds will be prevented from acquiring

existing businesses, including extending the prohibition on

management buyouts and share acquisitions to VCT non-

qualifying holdings and VCT funds raised pre-2012.


Nil-rate band

The inheritance tax (IHT) nil-rate band will remain frozen at

£325,000 until April 2021.

Main residence nil-rate band

An additional nil-rate band will be available when a residence

is passed on death to direct descendants. It will be £100,000 in

2017/18, £125,000 in 2018/19, £150,000 in 2019/20 and £175,000

in 2020/21. It will then increase in line with CPI. The band will be

transferable where the second spouse or civil partner of a couple

dies after 5 April 2017, regardless of when the first of the couple


The extra nil-rate band will also be available when a person

downsizes or ceases to own a home after 7 July 2015 and assets

of an equivalent value, up to the additional nil-rate band, are

passed on death to their direct descendants. This element will

be the subject of a technical consultation. For estates with a net

value of more than £2 million, the additional nil-rate band will

be withdrawn at £1 for every £2 over this threshold.

UK residential property of non-domiciles

From April 2017 IHT will be payable on all UK residential property

owned by non-domiciles regardless of their residence status for

tax purposes. This will include property held indirectly through an

offshore structure. A full detailed consultation will follow later

this year.


If you downsize your


consider creating a

separate fund to identify

the IHT-free part of the