New tool launched to aid AR and BR apportionment

The government's changes to Inheritance Tax (IHT) came into force on 6 April and HMRC has launched an online tool to help apportion the £2.5 million allowance for Agricultural Relief (AR) and Business Relief (BR) across qualifying assets. The tool can be used for estates with up to eight agricultural and eight business property assets. It enables users to calculate how much of the allowance has been used on lifetime gifts and shares the remaining allowance across qualifying assets in the estate. It provides a breakdown of 100 per cent and 50 per cent for each asset and directs the user to the correct IHT form to send to HMRC. The tool does not calculate the tax due or apply other exemptions.