Inheritance Tax (IHT) at 40 per cent is due on all estates worth £325,000 or more.
In addition to the £325,000 tax-free allowance – known as the ‘Nil-Rate Band (NRB)’ – which everyone is entitled to, couples who are married or in a civil partnership receive the ‘Residential Nil-Rate Band (RNRB)’.
This allows couples to leave their home to certain family members, with a portion of the property’s value being IHT free.
The RNRB tax relief rise (as of April 2020) is £175,000, meaning that a couple will have a combined IHT allowance of £1million, with a single person able to leave an estate of up to £500,000, before IHT kicks in.
Despite the increase in the RNRB exemption allowance, the rise in property values means many people will still leave estates that are liable for IHT.
We can help you put plans in place to minimise IHT including:
- A full Will review
- Advice on setting up a trust
- Securing RNRB for your main residence
- Identifying assets that qualify for business or agricultural property relief
- Gifts and charitable donations advice