inheritance tax

INHERITANCE TAX RULES FOR PASSING ON THE FAMILY HOME

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Inheritance Tax Rules

This additional relief should be taken into consideration when drafting your Will. Rawcliffe & Co can work with your solicitor to make sure your Will is tax efficient.

An additional nil rate band of up to £175,000 is available on death where your residence is left to direct descendants. This is in addition to the normal £325,000 nil rate band.

This additional relief is however restricted if your assets exceed £2 million. The rules are fairly complicated but we can review your personal circumstances to ensure that you take advantage of all the relief that you are entitled to.

This additional inheritance tax relief is available even when you downsize to a smaller property.

For example, a married couple currently live in a large house worth £500,000 and downsize to a flat worth £250,000. After giving away some of the proceeds during their lifetime they’d still benefit from inheritance tax relief based on the higher valued property. They could even sell up completely and move into a rental property and still get the inheritance tax relief!

 

Want support with Inheritance Tax Planning? Talk to our friends at North West Financial Solutions

 

Karl Berry has worked in Financial Services since 1987 for large Insurance Companies and Major High Street Banks. He is now a Director for North West Financial Solutions and still actively advising on Corporate and Personal Financial Planning.

There are many ways to save or reduce tax liabilities which can involve effective structured planning or the purchase of insurance, investment and pension plans. Our Advisors are able to asses your current financial situation and plans for the future. We can offer advice on how to become as tax efficient as possible, both now and for the future.

 

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