A new allowance called the Residence Nil Rate Band (RNRB) comes into force April 2017
If the total value of your assets is between £650,000 and £2,300,000, the Residence Nil Rate Band (RNRB) may be relevant for you.
The RNRB will come into force in April 2017 and the allowance will increase each year until 2020.
But the RNRB is very complicated and will not apply to everyone. Also some people may need to alter their Will in order to benefit.
Single people and couples without children cannot benefit.
Married couples, civil partners, widows and widower can.
However, there are other conditions as well - you must own, or haved owned, a house and be leaving it to children, step children, adopted children or foster children or their issue. Also they must inherit the house outright and at 18. Creating a trust may result in the loss of this extra benefit and therefore paying more tax.
Now is the time to review your Will, due to the complexity of this legislation, professional advice is essential.
For additional advice on this article, please contact our Wills and Probate Team on 01905 721600.