Refunds for Power of Attorney Fees
The Office of the Public Guardian (“the OPG”) announced last […]
Inheritance Tax is charged on your death at the rate of 40% based on the value of your assets. Your estate only pays Inheritance Tax at this rate on the value of your estate that exceeds the nil rate band which is currently £325,000.
From 6th April 2017 an additional ‘residence nil rate band’ applies so that your estate may pay less Inheritance Tax when your family home is left to children, grandchildren and some other individuals.
Will your estate benefit ?
Residence NIL rate band can be claimed if you die after 6th April 2017. If you die before that date, your surviving spouse or civil partner may be able to carry RNRB forward to be used when they die.
Your estate benefits from RNRB if you leave your interest in your home to children, grandchildren, stepchildren and foster children, as well as the spouses or civil partners of these individuals.
Does your estate qualify ?
RNRB can be claimed if all of the following apply to you:
• You die after 6th April 2017
• You leave an estate valued at less than the upper limit (initially £2 million)
• You leave your home to qualifying beneficiaries
What is the value of RNRB ?
In the tax year 2017 – 2018 the RNRB level is set at £100,000. This is set to rise to £125,000 in the tax year 2018 – 2019, with other rises planned in succeeding years. The combined nil rate band for spouses and civil partners will be £850,000 in the tax year 2017 – 2018.
What should I do ?
You should review your will and estate planning to see whether or not it is possible to arrange your affairs so that RNRB can be claimed.