Review your Will to benefit from Tax Breaks
According to the Telegraph individuals need to check their wills to avoid missing out on £70,000 of new inheritance tax breaks. The introduction of the new residence nil rate band in April 2017, or the family home allowance, means many wills are out of date – and people will not benefit from the new tax break. From April 2017, each individual can claim an additional allowance of £100,000 to offset the sale of a family home on death, on top of their existing £325,000 inheritance tax exemption. This increases by £25,000 each year until it reaches £175,000 in April 2020.
For a couple this means a £1m family home can be left tax free. However, the rules around how the new tax break will work are so complicated experts warn that many individuals could be caught out. Read more.