Inheritance Tax planning

Inheritance Tax Planning has been seen as the tool of the affluent, however the growing wealth of the UK population and the increase in house prices have meant that families that thought they had relatively modest wealth need to plan to mitigate in advance.


Having a plan is essential, especially given how it could affect your relatives should you die. You would not want them having to sell your assets to raise the capital to pay the Inheritance Tax bill, for example having to sell the family home.


You have a tax-free allowance known as the Nil Rate Band (NRB), which is currently £325,000. The Residential Nil Rate Band (RNRB) was introduced on 6 April 2017, which now provides a further tax-free allowance on residential property of £175,000, subject to certain conditions. Any wealth above the NRB and RNRB is taxed at 40% on your death.


If you are married or in a civil partnership you can transfer your NRB and RNRBs to your partner on first death without incurring tax. On second death the surviving spouse has two NRBs and RNRBs.


We will be able to give you guidance on this.