Does your will maximise use of the increased Residence Nil Rate Band?
The Residence Nil Rate band was introduced in April 2017 and has increased Does your Will maximise the benefit?
Each year the government reviews the position on tax allowances. Are you up to date with the latest changes?
The following are some of the changes that came in to effect as of 6thof April this year:
- The personal allowance for Income Tax has increased from £11,500 to £11,850.
- The personal allowance for Capital Gains Tax has increased from £11,300 to £11,700 for individuals and executors. For Trustees the allowance has increased from £5,650 to £5,850.
- For Inheritance Tax, although the Nil Rate Band remains the same at £325,000 (as it has done for many years), the Residence Nil Rate band, which was introduced in April 2017, increased from £100,000 to £125,000.
With the Residence Nil Rate Band there are potential pitfalls where individuals can lose the benefit of the allowance altogether. /news/new-residence-nil-rate-band-tax-allowance-will-benefit/
This allowance will not apply to all individuals and in some cases you could lose the allowance unless your estate is left in a certain way in your Will. Following the introduction of the Residence Nil Rate Band in April 2017, there has been a rise in the number of individuals updating and amending their Wills to ensure they benefit from this new allowance.
For advice on whether or not your estate can benefit from the Residence Nil Rate Band, or whether your Will needs to be updated to so that your estate can benefit from the allowance please get in touch.