More Estates to be Subject to Inheritance Tax
A report from financial services company NFU Mutual has concluded that the increase in wealth in the UK combined with the Inheritance Tax Nil-Rate Band being fixed at £325,000 until 2021 means more estates are going to become subject to Inheritance Tax than ever before. Increasing house values and share prices mean a potential windfall for the Treasury on the death of those with substantial assets.
Residence Nil-Rate Band
With the introduction of the Residence Nil-Rate Band from April 2017, it will be possible in limited circumstances for a couple to leave up to £1million free of Inheritance Tax by 2020. The provisions around this new legislation are however complicated and careful consideration and planning needs to be undertaken to ensure the benefit of the Inheritance Tax allowances are achieved.
If you would like advice or information on estate planning please contact us.