Here are 5 things you need to know about the new Residential Nil Rate Band
- From 6th April 2017 each individual passing residential property to children or grandchildren will receive an extra
- £100k allowance (on top of the £325k that is already available) before Inheritance Tax is payable
- It will rise in increments of £25k per year until 2020-2021 when it will be £175k for each individual
- Where spouses or those in civil partnerships own a property they can combine their allowances
- If an estate is over £2m it will start to taper down (£1 is lost for every £2 over £2m) The main residence does not have to be owned at the date of death if eg if you have downsized to a smaller property
In order to benefit from the new legislation the Will must meet certain criteria and you should take advice on this. If you have a will which contains a nil rate band discretionary trust, it is important that you seek advice as the new Residential Nil Rate Band may not be available to you if you continue to use that structure.
If you have been thinking about reviewing your current Will or making a Will for the first time we can help and give bespoke advice fitted to your circumstances.
For an informal initial discussion, please get in touch with Rebecca Head or Joanna Parkin at Four Oaks Legal Services 01543 440 308 or e-mail firstname.lastname@example.org