With substantial changes planned in the rates paid for Income and Capital Gains Tax, it was unsurprising there were no major new announcements concerning Inheritance Tax (IHT).

The Government instead reconfirmed its commitment to the new Residence Nil Rate Band (RNRB) introduced in the summer 2015 Budget:

An extra £175,000 IHT allowance on the family home will be phased in from April 2017. This will combine with the original IHT allowance of £325,000 to give some individuals a £500,000 IHT allowance when leaving property to children and descendants on death and a combined £1m IHT allowance for spouses and civil partners. Read here for full details.

The Government confirmed it will legislate to ensure the RNRB will be available to those who downsize to a smaller property after 8 July 2015.

For more information on the Residence Nil Rate Band or to find out how the changes to Inheritance Tax may affect your existing Will and testamentary wishes, please contact us on 0208 537 3448 or wills@ashtongrace.co.uk.

Ashton Grace – Specialists in Wills & Estate Planning