The value of assets you can have, without being liable for inheritance tax (the nil rate band) is £325,000, or for a married couple collectively it is £650,000.
From 6 April 2017 you can benefit from the residence nil rate band (RNRB) and this will give you an additional allowance, as long as certain conditions are fulfilled. The extra amount available is presently £100,000 which will increase incrementally until 2019 to £175,000. As above, a married couple will receive double the amount.
The conditions to benefit from the RNRB allowance are as follows:-
- The death occurs on or after 6 April 2017
- The estate is worth less than £2,000,000
- A residence in the estate is left to the deceased’s children or grandchildren. In some circumstances other classes of relatives are also allowed.
The provisions of your will can affect your ability to claim the residence nil rate band. It is important to bear in mind that you may also be able to transfer any unused additional threshold from a late husband, wife or civil partner’s estate, even if they died prior to the above date.
If you think your estate may benefit from these new provisions, we would encourage you to consider reviewing your will, or having a will made if you do not already have one. Whilst the conditions for benefiting from the RNRB provisions may appear straightforward, depending on your circumstances, more specialist planning and advice may be necessary.
If you wish to discuss the contents of your will or the making of a will please contact our Wills and Probate Department or email [email protected] to arrange a free initial half hour appointment.
