Did You Know About The Changes To Inheritance Tax Provisions?
For those of you who own a home and have children or grandchildren please read on…
The new rules allow a further Inheritance Tax exemption (called the “Main Residence Nil Rate Band” in the legal world) when your home or main residence is, in the event of your death, left to your children or grandchildren (or again in the legal world defined as “a direct descendant”).
This could significantly reduce your Inheritance tax liability when you die.
So, in addition to your existing Inheritance Tax exemption (the “Nil Rate Band”) which currently stands at £325,000 for each individual (or potentially double the value of the Nil Rate Band if you are married or in a civil partnership at the date of your death), your direct descendants will be eligible to apply for this further tax relief.
The amount available this tax year is £100,000. This to be increased by £25,000 per tax year over the next four years, and then to be reviewed.
If you have an estate that could potentially exceed the existing Nil Rate Band, this may be of interest to you. Our team of Estate Planning solicitors can help you get your affairs in order.
Contact us today by emailing email@example.com if you would like to plan for the future.