The new tax year has brought a positive change for those concerned about the burden of inheritance tax likely to fall on their children and grandchildren with the advent of the ‘residence nil rate band’ designed to offset the value of the family home being passed down the family.
Whilst the headlines may talk in terms of the inheritance tax threshold effectively increasing to £1m for married couples and £500K for singletons (once the new allowance is fully phased in), the new rules are complicated and the devil is in the detail. The residence nil rate band won’t be available in every estate and many will miss out by failing to review their Will and estate planning to make sure that their heirs stand to benefit under the new rules.
The complexity of the new rules and the significant tax savings at stake means that a joined up approach to legal and financial planning is more important than ever.
If you would like more information about inheritance tax, please do not hesitate to contact a member of the Private Client Team.
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