INDEPENDENT FINANCIAL ADVICE CENTRE

Authorised and Regulated by the Financial Conduct Authority

97 High  Street

Billericay

Essex

       CM12 9AJ

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01277 630873

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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.  

The qualifying residential interest will be limited to one residential property but personal representatives will be able to nominate which residential property should qualify if there is more than one in the estate. A property which was never a residence of the deceased, such as a buy-to-let property, will not qualify.


A direct descendant will be a child (including a step-child, adopted child or foster child) of the deceased and their lineal descendants.


A claim will have to be made on the death of a person’s surviving spouse or civil partner to transfer any unused proportion of the additional nil-rate band unused by the person on their death, in the same way that the existing nil-rate band can be transferred.


If the net value of the estate (after deducting any liabilities but before reliefs and exemptions) is above £2 million, the additional nil-rate band will be tapered away by £1 for every £2 that the net value exceeds that amount. The taper threshold at which the additional nil-rate band is gradually withdrawn will rise in line with CPI from 2021 to 2022 onwards.


Where part of the main residence nil-rate band might be lost because the deceased had downsized to a less valuable residence or had ceased to own a residence on or after 8 July 2015, that part will still be available provided the deceased left that smaller residence, or assets of equivalent value, to direct descendants. However, the total amount available will not exceed the maximum available residence nil-rate band.


Inheritance tax for the majority could be classed as a voluntary tax as with careful planning it is possible to mitigate the liability and in some cases totally eliminate it!





Main Residence Nil rate Band Continued

THE ADVICE CENTRE - making sense of a complicated world

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