Life has changed for the nation since the emergence of the Coronavirus which prompted the lockdown to be implemented by the Government from 23 March 2020. Since this date, life as we knew it has changed.
However, with the media providing vital updates about how to keep safe and remain alert whilst the government restrictions have been in place, we may have missed the change in the Inheritance Tax allowances which became applicable after 6 April 2020.
So here is what you need to know:
At present, the current Inheritance Tax threshold for an individual is £325,000.
If a married couple or a couple who have formed a civil partnership leave their estate to each other then the last to die could benefit from both allowances, this being £650,000.
In addition to this, if you own a property or a share in a property which is deemed to be the family home there is the potential of applying the Residential Inheritance Tax Allowance (known as the Resident Nil Rate Band) to the estate. For this to be claimed there are certain rules which are appliable:
- The date of death must be on or after 6 April 2017
- The family home or share in the family home is held in the estate at the date of death
- The property is inherited by direct descendants only
- The total value of the deceased’s estate does not exceed £2 Million
If the deceased’s estate meets the above rules the residential inheritance tax allowance can be applied to the estate. The maximum figure for the tax year 2020/2021 is £175,000. This again can be transferred between spouses or civil partners. This means that the estate of the last to die could benefit from a maximum of £350,000.
Therefore, the maximum Inheritance Tax allowance which could be available to the estate of the last to die is £1 Million.
This is of course just a basic outline and if you require more in-depth bespoke Inheritance tax advice in relation to your estate with a review of your existing Wills then we can assist you with this.
Why choose Oakwood Solicitors?
Oakwood Solicitors can assist you through this process and provide you with the necessary advice. Our team have gained an excellent reputation amongst local organisations and their client-base for delivering a personal and compassionate service. As a firm we pride ourselves on having a high standard of customer service and making all our current and potential clients feel at ease when making any decisions regarding their future wishes.
WHAT TO DO NEXT
Get in touch today for a free initial consultation in complete confidence. Choose one of the methods on the right-hand side of this page, or call us on 0113 200 9787 to find out how we can help you.
We would love to hear your comments or feedback
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