Mr Osborne says that, “wanting to pass something onto your children is the most basic, human and natural aspiration there is" so from 2017, there will be a new £175,000 allowance on homes left to children or grandchildren, potentially allowing £1 million to be passed on to the next generation tax-free.
The new allowance will be on top of the existing £325,000 threshold which will now be fixed until the end of 2020 - 2021. Both allowances can be transferred to your spouse or civil partner. Therefore if you die and leave everything to your spouse, when they die they will not only have their own £325,000 nil rate band threshold and the transferred nil rate band from their spouse, they will also have their £175,000 allowance (on property only) and their spouse’s transferred property allowance of £175,000.
To take full advantage of the allowances a valid Will should be in place, so if you need a new Will or your old Will needs updating give our Private Client Team a call on 02392 296296.