Inheritance Tax Changes 2017

 

Changes are being made to Inheritance Tax which may benefit people who want to pass on their estate including their home to their spouse and immediate family.

 

If you give your whole estate to your spouse or civil partner you will apply for the existing tax-free threshold of £325,000 (the Nil-Rate Band, NRB) which can then be used on the second death to gain a tax-free threshold of £650,000 at the moment.

 

From 6th April 2017 you will also qualify for the Residential Nil-Rate Band (RNBR) for estates worth up to £2 million. The RNBR will apply when a home is being passed on to closely inherited lineal family including children or grandchildren and step children. The RNBR can also be transferred to your spouse to use on the second death if ultimately the home passes to your children and so on. You may also be allowed to apply for the RNBR if half your house is put in trust after the first death and also if you downsize your home or move to a retirement home.

The RNBR is being phased in each year starting in the 2017/18 tax year:

  • 2017-18: £100,000
  • 2018-19: £125,000
  • 2019-20: £150,000
  • 2020-2021: £175,000

 

Your Will may need to be updated to make the most of this new tax-free allowance but we also suggest you review your will every five years.

 

For further information on the changes please contact Livingstons on 01229 585555

Coronavirus

Our employment team has received a huge number of requests for help from companies who are unsure how to interpret Government guidance and how best to deal with their employees at this difficult time. 

We are producing regular factsheets for our employees which explain the latest Government guidance.  Our factsheets also sets out practical advice on issues such as furloughing (the new procedures by which employees can remain at home but employers can claim a grant to cover their wages), re-negotiation of contracts and sick pay. 

If you would like to receive these factsheets, please contact Gail Black of our employment team at g.black@livingstons.co.uk.  If you have any specific queries about any particular employment issue, please e-mail Gail Black or Steve Walker at s.walker@livingstons.co.uk.

Full details of how we are dealing with Coronavirus are available here.

We will do everything possible to keep disruption to a minimum during this difficult time.