6th April 2017 is a very important date for couples having between £900,000.00 and £2m of an Estate on death. That date sees the introduction of the residence nil rate band. At the moment inheritance tax is paid on death at the rate of 40% of assets held above the nil band. That band is £325,000.00 each but with couples doubles up to £650,000.00.
From 6th April 2017 there will be an additional nil rate band purely relating to the family home. This will be up to £175,000.00 each phased in over 4 years. It starts at £100,000.00 each on 6th April 2017 and increases by £25,000.00 per year over the next 3 years. If your home is worth £350,000.00 you may eventually be able to pass on a joint estate of £1m without having to worry about inheritance on your death. There are certain rules which need to be complied with and not everyone will necessarily qualify.
Please note that couples with assets of more than £250,000.00 where there are children in any event need to consider a Will due to the rules that otherewise apply in the absence of Will.
To arrange an appointment to discuss this matter and whether or not you need to change your Will indeed make a Will then please arrange to see David Acklam or Dawn Walmsley by contacting our office on 01254 872272.