New Inheritance Tax Allowance - make sure you take advantage

Inheritance Tax is an eye-watering 40% and the number of UK families paying it is increasing each year as house prices push the value of family assets above the tax threshold.

A new home allowance introduced in April 2017 (called the Residence Nil Rate Band) now lets you pass on more. Broadly speaking, by 2020 if a married couple leaves their home to their children or grandchildren their combined allowance will increase to £1million which means only if you have assets above that amount will your estate have to pay 40% tax.?

However, people whose estates are worth more than £2million will have these additional home allowances gradually withdrawn, tapered at a rate of £1 for every £2 their estate is over this amount.

If you are one of the anticipated 45,000 estates likely to get taxed please contact us for advice.