Inheritance Tax

The IHT nil rate band is £325,000.   For those of us who are married or in a civil partnership, any unused nil rate band can be passed to our surviving spouse or civil partner, producing a total tax-exempt band of £650,000.

From April 2017 the residence nil rate band applied to the value of a home left on death to a direct descendant of the deceased.  This home-related nil rate band started at £100,000. per person from April 2017 and increases every year by £25,000. up to  April 2020 giving £175,000 per person, allowance a married or registered civil partnership couple to eventually pass on a family home worth up to £1m with no IHT (2 x £325,000. plus 2 x £175,000.)

The home-related nil rate band will not apply in full if the total estate is worth over £2m, and will not apply to a house that has never been used as a residence by the deceased (eg. a buy-to-let property).

Where after 8 July 2015 someone downsizes their home or ceases to own a home, thus turning the IHT-relieved property into cash, assets of an equivalent value will also be eligible for this relief

Inheritance Tax

The IHT nil rate band is £325,000.   For those of us who are married or in a civil partnership, any unused nil rate band can be passed to our surviving spouse or civil partner, producing a total tax-exempt band of £650,000.

From Aprl 2017 the residence nil rate band appied to the value of a home left on death to a direct descendant of the deceased.  This home-related nil rate band started at £100,000. per person from April 2017 and increases every year by £25,000. up to 2021 giving £175,000 per person, allowance a married or registered civil partnership couple to eventaully pass on a family home worth up to £1m with no IHT (2 x £325,000. plus 2 x £175,000.)

The home-related nil rate band will not apply in full if the total estate is worth over £2m, and will not apply to a house that has never been used as a residence by the deceased (eg. a buy-to-let property).

Where after 8 Juy 2015 someone downsizes their home or ceases to own a home, thus turning the IHT-relieved property into cash, assets of an equivalent value will also be eligible for the relief.