Stay Informed: Inheritance Tax Law Changes
In April 2017 the inheritance tax laws are changing again, and even the HMRC admits it adds an extra layer making it even more complicated.
They are introducing a new Residence Nil Rate Band, which is an extension to the current inheritance tax law. It will be incrementally phased in over the next 4 years, but by 2020/21 a person owning a property who passes away may be able to claim an additional £175,000 to their current inheritance tax threshold of £325,000… Potentially saving their loved ones a lot of money!
However, it’s not a straightforward add-on to the tax threshold, there are complex rules surrounding if you or the property will qualify.
For example the following may be disqualified:
- Properties being left to extended family members or trusts
- Properties sold to go into a nursing home
- Buy to Let or multiple residential properties
- Estates with a value over £2M
If you have any questions about what inheritance tax band your estate will fall into and how that may affect your loved ones, our Wills & Probate Team are on hand and happy to help answer your questions. Send us a message by clicking here or ring us on 01623 468 468.