From April 2017, estates have benefited from an additional residential nil-rate band (RNRB) which is currently £150,000 (rising to £175,000 by April 2020) where the deceased’s residence is left to their direct descendants (children, step-children, adopted and fostered children and their respective spouses and civil partners). Where an estate has a net value of more than £2m, the RNRB is withdrawn at a rate of £1 for every £2 over this threshold.

From 2020, if the nil-rate band and RNRB are both rolled over unused on the first death to the surviving spouse or civil partner, on the second death this would mean there could be a tax-free nil rate band of £1m available.

The rules involved in Inheritance Tax are complex and it is for this reason that  it’s important to discuss your situation with us, as then you will be able to understand its potential effects on you, whether your loved ones will lose out on some of their inheritance and, what we can do to reduce or even eliminate its effects.

The calculator below can help give you an estimate of your Inheritance Tax (IHT) liability. 

Link to calculator – Needs amending to correct year and include RNRB

INHERITANCE TAX PLANNING, WILL WRITING, TRUSTS AND TAXATION ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY