New Residence Nil Rate Band

From April 2017 a new IHT- free allowance has being  introduced. It is to be known as the residence  nil rate band (RNRB) and will apply if you leave your residence to your  “direct descendants”.

The objective of the policy according to the Government is to “reduce the burden of IHT for most families by making it easier to pass on the family home to direct descendants without a tax charge.”

For some years now the nil rate band has been fixed at £325,000 and it looks like it will remain set at this amount for the next few years. At the moment IHT is charged at 40% on the value of a deceased person’s estate which exceeds the nil rate band. Where spouses or civil partners leave their estates to each other the nil rate band can be transferred giving a maximum of £650,000 IHT free.The RNRB when introduced can also be transferred between spouses and civil partners.

If you would like more information or to find out whether you should consider revising your Will to benefit from this new allowance, please contact me Heather Warnock  at heather@mitchells-roberton.co.uk or by telephoning 0141 552 3422.

This entry was posted in In The News, Legal by Heather Warnock. Bookmark the permalink.

About Heather Warnock

Heather joined Mitchells Roberton in March 2013 as a Financial Guardian Administrator. Although Heather is working as a Paralegal she does have a Law Degree having graduated from Glasgow Caledonian University in 2011 and thereafter completing her Diploma in Legal Practice at Strathclyde University in 2012. The qualifications needed for the post of Financial Guardian Administrator are an aptitude for administration, common sense and empathy for those suffering from mental illness in its various manifestations . Heather has these qualities in abundance, being a volunteer befriender with the Glasgow Association of Mental Health. Despite only recently finishing her Law Degree Heather is a part time tutor in the Law Department at Glasgow Caledonia University. Heather who is originally from Northern Ireland loves going home to visit her family whenever she can. She enjoys live comedy and the theatre. She is also an excellent cook and expert baker…. most welcome skills for our office.

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