Background Note
5.Where the Retail Prices Index (RPI) for the month of September is higher than it was for the previous September, then, unless Parliament otherwise determines, the limit of the inheritance tax nil rate band increases from the 6 April of the following year by the same percentage as the percentage increase in the RPI.
6.Section 155(1)(b) and (4) of FA 2006 provided for the limit of the inheritance tax nil rate band to be set at £325,000 for the tax year 2009-10.
7.Section 4 of FA 2007 previously provided for the limit of the inheritance tax nil rate band to be set at £350,000 for the tax year 2010-11.
8.The RPI for September 2009 was not higher than that for September 2008. This section sets the nil rate band for the tax year 2010-11 at £325,000 and disapplies indexation for tax years 2011-12 to 2014-15 inclusive.