A new allowance that aims to protect the family home from Inheritance Tax (IHT) came into effect on April 6.
The Main Residence Nil Rate Band (MRNRB) will be available against the value of a deceased’s property where it is left to their descendants.
This allowance will be in addition to an individual’s own nil-rate band, which is currently £325,000.
The new band is being introduced at £100,000 and will increase by £25,000 a year until it reaches £175,000 by 2020. This means that for married couples and civil partners there is a possible £1 million relief on IHT from April 2020.
The MRNRB is only available to people who die on or after April 6, 2017, with a residential interest in a property. The allowance is transferable to surviving spouses and surviving civil partners.
If you need advice on this matter or any other issues please contact the Wills and Probate team who will be happy to help you.