Did you know that your estate can now benefit from a new Inheritance Tax exemption?
The new IHT Residence Nil Rate Band (RNRB) is in addition to an individual’s own Nil Rate Band, currently £325,000. The new RNRB is currently £100,000 and will increase by £25,000 each tax year until 2020/21. This new exemption will only apply to you if you own your own home, and are leaving it to your direct descendants.
In the same way that the current Nil Rate Band is transferable between spouses and civil partners on death, the RNRB will also be.
Depending on your circumstances by April 2020 there will be a possible total £1,000,000 nil rate band available.
The law is ever-changing and what was applicable when you made a Will say ten years ago may not now be the best way to leave your estate it is good practice to review your Will on a regular basis to ensure that it carries out your wishes and makes the best use of the tax exemptions available to you and your estate.
If you would like to review your Will please do not hesitate to contact us at Lymington 01590 689500 or New Milton on 01425 610078.