20.02.18

Research suggests 70% of individuals ‘unaware of inheritance tax nil-rate band’

Research carried out by Canada Life has suggested that a significant amount of individuals ‘do not know the threshold’ for the standard inheritance tax (IHT) nil-rate band. Canada Life found that 70% of those surveyed did not know the standard … Find out more »

15.02.18

Chancellor commissions OTS to review inheritance tax rules

Chancellor Philip Hammond has commissioned the Office of Tax Simplification (OTS) to review the UK’s inheritance tax (IHT) regime, and outline ways in which the tax can be simplified. In a letter to Angela Knight, Chair of the OTS, and … Find out more »

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Change of the Law in Inheritance Tax ..

A change in the law around Inheritance Tax is a timely reminder to people – and their professional advisers – about the importance of reviewing their affairs regularly.

Inheritance tax is always a tricky issue and now people are being warned that they and their loved ones could lose out because of now-redundant discretionary trust clauses.

People are being told to check their liability in the light of the soon to be introduced main residence nil-rate band. The allowance, introduced in the Summer Finance Bill 2015 to provide for an additional main residence nil-rate band for an estate if the deceased’s interest in a residential property, which has been their residence at some point and is included in their estate, is left to one or more direct descendants on death, is to be introduced gradually from April 2017. It will eventually be worth up to an extra £175,000 per person by 2020/21.

Good news, but for married couples who chose to include a clause allowing the creation of a discretionary trust for their children or grandchildren upon first death to use their IHT nil-rate band, it could be problematic as the new legislation renders this clause redundant.

Don’t worry, though – as with so many things in life, once you’re aware of the problem fixing it is relatively simple, or will be with the help of your professional wills and probate adviser. For advice on the new allowances – and whether you need to change your will to address them – please Contact us here.

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