Archive for July, 2015

It was announced in the Summer Budget that there will be a family home allowance introduced in April 2017 of £100,000 per spouse on a rising scale to £175,000 in 2020.

The Government announced:

Taking the family home out of Inheritance Tax

Currently, Inheritance Tax is charged at 40% on estates over the tax-free allowance of £325,000 per person. Married couples and civil partners can pass any unused allowance on to one another.

From April 2017, each individual will be offered a family home allowance so they can pass their home on to their children or grandchildren tax-free after their death. This will be phased in from 2017-18.

The family home allowance will be added to the existing £325,000 Inheritance Tax threshold, meaning the total tax-free allowance for a surviving spouse or civil partner will be up to £1 million in 2020-21.

The allowance will be gradually withdrawn for estates worth more than £2 million.

This is good news for those who are looking at inheritance tax planning in the future.

If you would like more advice on this in connection with the preparation of your Will contact we solicitors llp now.

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