Passing on the family home
25 Jan 2020
The Labour Party was proposing to reverse the recent Conservative Party inheritance tax (IHT) cuts if elected. They were referring to the additional nil rate band for passing on the family home. This additional relief should be taken into consideration when drafting your Will and we can help to ensure that your Will is tax efficient.
When fully phased in from April 2020, an additional nil rate band of up to £175,000 is available on death where your residence is left to direct descendants.
This is on top of the normal £325,000 nil rate band.
The residence nil rate band is, however, restricted if your assets exceed £2 million. The rules are fairly complicated, but we can review your personal circumstances to enable you to take advantage of all the relief that you are entitled to.
Note that the additional IHT relief is available even when you downsize to a smaller property or move into care, provided assets of equivalent value are left to direct descendants in your Will.
Professional advice should always be sought to protect your wealth, secure the financial future of your beneficiaries and plan for IHT, a legitimately avoidable tax.
Our Beavis Morgan tax experts are available to guide you and advise you on the available strategies.