INDEPENDENT FINANCIAL ADVICE CENTRE
Authorised and Regulated by the Financial Conduct Authority
97 High Street
Your Home is at risk if you do not keep up any mortgage or payments secured upon it!
You should remember that past performance is not necessarily a guide to the future. Market and currency movements may cause the value of units, and the value derived from them, to fall as well as rise and you may get back less than you invested when you decide to sell your units. The tax treatment of investments and pensions is not guaranteed and may change in the future.
Inheritance Tax (IHT) used to be something that only the wealthy worried about but potentially over 10 million households could be subject to this tax. Fortunately, the recent changes to the rules help some couples mitigate the effects of the this tax and in some cases eliminate it completely.
The current Inheritance Tax rate allowance is £325,000 per individual and it now possible for qualifying couples to carry forward any unused relief until the second death. However, if the estate is valued above £325,000 for an individual or £650,000 for a qualifying couple, the excess is still taxed at 40% !!! Unless you qualify for the Main Residence Nil Rate Band.
Main Residence Nil Rate Band
This will effect individuals with direct descendants who have an estate (including a main residence) with total assets above the Inheritance Tax (IHT) threshold (or nil-rate band) of £325,000 and personal representatives of deceased persons. This measure introduces an additional nil-rate band when a residence is passed on death to a direct descendant.
This will be:
£100,000 in 2017 to 2018
£125,000 in 2018 to 2019
£150,000 in 2019 to 2020
£175,000 in 2020 to 2021
It will then increase in line with Consumer Prices Index (CPI) from 2021 to 2022 onwards. Any unused nil-rate band will be able to be transferred to a surviving spouse or civil partner.
The additional nil-rate band will also be available when a person downsizes or ceases to own a home on or after 8 July 2015 and assets of an equivalent value, up to the value of the additional nil-rate band, are passed on death to direct descendants.
For an overview of the main planning areas, click on these links
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