Are you aware of the new inheritance tax changes?
In April 2017, important changes to inheritance tax were phased in over a five-year period to include a new residence nil rate band.
The new nil rate band means married couples whose estates are worth between £650,000 and £2 million can save an incredible amount in tax on their estates. Those whose estate’s value falls below £650,000 need not worry and estates valued in excess of £2 million will not be eligible for the full additional allowance.
Previously, individuals could pass on a maximum of £325,000 to their offspring without paying tax, but the amount rose by £100,000, and further increased to £500,000 in 2020. The changes allow many families in the UK to pass on more of their property-wealth to their children without paying the levy.
Who should review their Wills?
Partner, Tim Woolford, stressed that any couple eligible for the new Residence Nil Rate Band should review their Wills.
He said, “It is important that Wills are amended and correctly worded to qualify for the new allowance – this is where we can help. Our friendly and knowledgeable team are happy to help you review your Will and prepare new or make amendments to existing Wills to ensure you maximise the value of your estate for your loved ones.”
