All assets held within the estate above the nil rate band (NRB), together with the value of any gifts in excess of the annual exemption made within the previous seven years, will be subject to IHT at the rate of 40%. Whilst the 40% hasn't changed in recent years the NRB has been frozen at £325,000 for now but the new IHT Residence Nil Rate Band (RNRB) was introduced in April 2017. It is additional to an Individuals own nil rate band of £325,000 and conditional on the main residence being passed to direct descendants (e.g. children/grand children).
By 2020/21 families could potentially escape IHT on up to £1million of their wealth subject to HMRC rules & individuals personal circumstances.
This could be a very significant amount indeed, but the good news is that there are lots of ways to reduce the amount of IHT your family will pay after you have gone.
Here are a few tips:
Inheritance Tax can be an issue because family members don’t like discussing the issue of money and death and feel it is a complicated issue.
There are things you can do and the sooner you address the problem the more options you will find available to you.
We can also calculate the likely impact of IHT on your estate and advise on a suitable measure to reduce the potential IHT liability. Additional measures such as trusts and funding to cover the cost of potential IHT would also be considered. We can help you deal with your assets to try and ensure that those who you want to benefits from your estate do so in the most effective way.