Residence Nil Rate Band (RNRB).
A new tax-free allowance was announced in the Summer Budget 2015 (the Residence Nil Rate Band) that will take effect on or after 6th April 2017. Downsizing provisions have yet to be finalised.
There are a lot of myths and misconceptions surrounding this new allowance - please call or view our website pages (not yet updated) for further information - including:
You may not get the full allowance (or double the allowance) if:
WATCH THIS SPACE!
Although Inheritance Tax may be avoided if you leave your business assets or shareholding, agricultural assets or AIM-listed share portfolio to a spouse or Civil Partner, if these are sold during his or her lifetime or if this tax relief is abolished between 1st and 2nd deaths, the proceeds become taxable. Your children or other beneficiaries may be obliged to hand over 40% of their inheritance to the government.
By gifting your business/agricultural assets in your Will into one or more Family Trusts the surviving spouse and children can make use of the assets during their lifetime and are not subject to Inheritance Tax on the second person’s death. The trust(s) can be used in conjunction with a Cross Option Agreement and other tax or estate planning trusts in your Will.
Cornerstone Wills 2003-2013 | All Rights Reserved sitemap