Inheritance Tax - The New Family Home Allowance
05 September 2017
The Family Home Allowance is a new Inheritance Tax break - a welcome relief to many considering the freeze to the Inheritance Tax nil-rate band since 2009.
Rising property prices have left more families open to inheritance tax implications so this new allowance, also known as the Residential Nil Rate Band (RNRB), has been welcomed but not everyone will benefit.
The new RNRB applies only to residential property when it is left to direct descendants, namely, children, grandchildren, step-, adopted and foster children and their linear descendants. Siblings and childless couples will miss out on this allowance.
There is tapered relief relating to this allowance on estates valued over £2 million and buy-to-let property never lived in by the deceased will not be eligible.
Read our guide on the Family Home Allowance and get good advice from your accountant at Daly Park regarding your estate planning or speak to your solicitor.