Specialist advice could help you find ways to reduce inheritance tax (IHT) or eliminate it altogether.
Without planning, inheritance tax could be payable on the portion of your estate worth over a certain threshold. Everything you own – from your home and savings to other items like cars, jewellery and investments minus any debts – contributes to the value of your estate. It’s possible your home on its own could exceed current tax-free thresholds, which are:
- up to £325,000 (if you’re single or divorced)
- up to £650,000 (if you’re married, in a civil partnership or widowed).
Main residence nil-rate band: do you qualify?
From April 2017, HM Revenue & Customs will be gradually introducing an additional new ‘main residence nil-rate band'. This will be worth up to £175,000 per person by 2020. However, there will be a number of restrictions over how this allowance can be used, so not everyone can benefit. We can tell you if your estate qualifies.