Inheritance Tax Planning for many clients will be a key motivator in how their estate, investments, wills* etc are structured and implemented.
What is Inheritance Tax (IHT)?
IHT is a tax duty levied on Estates at the time of an individual’s death.
What is Nil Rate Band (NRB)?
The first £325,000 of an individuals Estate is taxed at 0%. This is known as the Nil Rate Band (NRB). Any estate value in excess of NRB is normally taxed at 40%.
There is now a secondary tax-free allowance, this is known as the Residential Nil Rate Band (RNRB). From 6th April 2020, this will stand at £175,000 per individual.
The above is a high-level explanation. We are able to give you crystal clear advice, to help you understand how your individual circumstance effects your Inheritance Tax allowance.