What the changes to the UK nil rate band mean for IHT planning
By Kirsten Hastings, 31 Mar 17
A staggering 70% of people have no understanding of the new residence nil rate band allowance coming into force on 6 April, which could have serious implications for their inheritance tax planning, warns Old Mutual Wealth financial planning expert, Rachael Griffin.
29% did not realise the allowance increases
“The RNRB will eventually allow up to £175,000 of property wealth, per person, to be passed on with no IHT liability.
“However, it is being phased in and in the ’17-18 tax year it will be £100,000,” Griffin said.
For deaths in the following tax years it will be:
- £100,000 in 2017 to 2018
- £125,000 in 2018 to 2019
- £150,000 in 2019 to 2020
- £175,000 in 2020 to 2021
Tags: IHT | Nil Rate Band | Old Mutual | Rachael Griffin
