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Inheritance Tax Efficient Wills

Each individual has an allowance of £325,000 (known as the ‘nil rate band’) that is taxed at 0% to Inheritance Tax. Some estates will have other relief and exemptions depending upon the assets within their estate and the beneficiaries of their estate. The unused nil rate band from first death can be transferred to the estate of the second spouse to be used at the date of second death so that he/she can use their own nil rate band and also the transferred nil rate band from the first deceased spouse. (See Inheritance Tax Planning)

You may want to use your nil rate band on first death for tax planning. If you set the nil rate band aside in your Will you have up to 2 years from the date of death to consider tax planning options. If your spouse is not UK domiciled then you only have an additional £325,000 on top of the nil rate band taxed at 0% to inheritance tax.

The Residential Nil Rate Band ('RNRB') came into effect from 2017 and applies to your main residence on the value of the property or the direct proceeds of sale.  The relief is now £125,000 from 6th April 2018, raising to £175,000 by 2021 provided that the funds are passing to children or grandchildren or trusts giving them an immediate right to the income or enjoyment of such funds (described as Immediate Post-Death Interest Trusts). 

If you have assets that are business assets or agricultural assets and these qualify for Inheritance Tax relief at either 100% or 50%, you will not receive the full amount of this valuable relief unless you make a specific gift of these assets within your Will. It is important that any such assets are identified and made the subject of a gift so that you obtain the full relief.

Please contact Trudy Rogers on 01635 569670 or email on for further information.