Inheritance Tax

Our team of expert inheritance tax solicitors can help you to maximise the amount that you leave your loved ones.

Residence Nil Rate Band

Inheritance Tax (IHT) is payable at 40% on the value of your assets exceeding the nil rate band (£325,000.00 in 2017/18 for an individual). The residence nil rate band (RNRB) is an additional amount for IHT purposes that is applicable to the value of your interest in a residential property that has been occupied by you at some time. It is available if you own, or previously owned an interest in a residential property and is applicable if you die after 5 April 2017.

The RNRB is £100,000.00 per individual in 2017/18. It will increase by £25,000.00 per year until it reaches £175,000.00 per individual in 2020/21. The RNRB will therefore be £350,000.00 for a married couple or couple in a civil partnership.

However if your estate exceeds £2 million the RNRB will be tapered and individuals with estates over £2.35 million and couples with a joint estate of over £2.7 million will not qualify for the relief.

A review of your Will by an inheritance tax solicitor is advisable if you are otherwise likely to qualify for the RNRB as you may be able to make changes to enable you to qualify for the relief.

Exempt assets and discretionary trusts

Inheritance tax (IHT) is payable on all assets exceeding the nil rate band for IHT, which is currently £325,000.00 for an individual. There are some assets, such as business or agricultural property on which 100% IHT relief may be claimed.

The benefits of these reliefs may be lost by leaving the assets outright to a spouse if there is a change in circumstances or law, so
you may wish to consider leaving these assets to a discretionary trust, of which your spouse and other individuals of your choice may be beneficiaries.

By working closely with you, our inheritance tax solicitors can help to minimise the tax payable upon your death and provide you with peace of mind that your loved ones will be taken care of.