Did you know that you may not be entitled to the Residence Nil Rate Band that could be worth up to £140,000?
In April 2017, the Government introduced a new Inheritance Tax relief for the family home – the Residence Nil Rate Band. Initially worth £100,000, this increased to £150,000 on 6 April 2019 and will increase further to £175,000 on 6 April 2020.
There are a number of qualifying conditions which must be satisfied to qualify for this additional relief. In order to qualify, your estate on death must leave a residential property to direct descendants which you must have lived in at some point during the period of ownership. Spouses and civil partners are each entitled to this amount, therefore, this relief will be worth a maximum of £350,000 for a couple, however, this relief will be tapered away where your estate on death exceeds £2m. Where someone has sold or given away their home, or downsized to a smaller property, they may still be able to get this relief. If, on death, you have left your estate including the property to a trust arrangement, your estate may not qualify for this relief.
The Residence Nil Rate Band is a very valuable relief which could reduce your Inheritance Tax liability by up to £140,000. If you would like us to review your Inheritance Tax position including the availability to you of this relief, then please do not hesitate to contact Graham Mitchell of our tax team who will be happy to discuss this further. Graham can be contacted on 01603 630684, email him and request a call back to email@example.com or fill in the form below.