New Inheritance Tax rules come into force next year.
A new Residence Nil Rate Band (RNRB) will be available for deaths after 6th April 2017; this means that property, or an interest in a property, ‘closely inherited’ attracts an additional nil rate band of £100,000 (in 2017/18) rising by £25,000 each tax year until it reaches £175,000 in 2020/21. This will be in addition to the ordinary nil rate band of £325,000 which will be frozen.
The new rules are rather complex, and whether you will attract the additional RNRB of £100,000 will depend on whether you qualify under the meaning of ‘closely inherited’, and whether the property that qualifies is your residence.
We would recommend that your Wills are revised to ensure that your beneficiaries will have the benefit of the additional RNRB.
Should you require any further information please contact us on 01446 721000 or firstname.lastname@example.org.