Inheritance Tax New Rules – What’s changing?
Everyone is currently entitled to pass on £325,000 of wealth tax free, regardless of whether or not they own a property. This is known as the tax-free threshold, or “nil-rate band”. Any assets in an estate above this amount incur an Inheritance Tax charge of 40pc.
Married couples and civil partners are entitled to double the allowance, or £650,000 before tax is payable.
From April 2017 the Government is introducing a new, additional tax-free allowance for people who own a home. This is called the “family home allowance”. It will eventually be worth an additional £175,000 per person. Added to the £325,000 allowance that everyone gets, this means a new allowance for property owners of £500,000 – or £1m for couples.
If you’d like to find out more about how these new rules affect you, why not tune in to hear our very own Nick Lawson, Director of HGH Wealth Management, B.Sc (Hons) PGDip BA Dip PFS, on the radio station thevaleonline.com at 4pm on Thursday 10 September where he’ll discuss some of the following:
Seven common questions Nick will answer about the new rules:
…Can I leave my house to other family members?
…Does the value of the house matter?
…What if the house is owned in just one name?
…What if we don’t own a house?
…Our home will be sold on death. Will we miss out?
…I’m already widowed. What’s my new allowance?
…What about job-related accommodation?
If you would like to know more about the additional tax free allowance or any other aspects of financial planning and Wealth Management, contact Nick Lawson on 01904 655202 or email nick.lawson@hghwealth.co.uk.
HGH Wealth Management Limited is a division of Hunter Gee Holroyd Chartered Accountants who have offices in York, Easingwold and Filey www.hghyork.co.uk.
HGH Wealth Management Ltd is an appointed representative of InvestAcc Ltd which is authorised and regulated by the Financial Conduct Authority. Visit www.hghwealth.co.uk for more information.
