Four key IHT planning tips for residential nil rate tax band
By Mark Battersby, 15 Mar 17
Some changes in inheritance tax law can affect wills and trusts, including the introduction of the first tranche of the Residential Nil Rate Band (RNRB) of £100,000 on 6 April 2017, says Karen Clark, tax partner in charge of the London private client team at RSM.
The RNRB is subject to further increases up to a maximum of £175,000 ($212,959, €200,137) by 6 April 2020, the conditions for which to qualify are such that careful Will drafting is required.
Some previous changes in tax law also affected the provisions of wills, such as the introduction of the transferable Nil Rate Band (NRB) between spouses in October 2007.
This was where an individual’s will no longer needed to specify that an ‘amount equal to the NRB in force at the date of my death’ should pass to beneficiaries other than the surviving spouse to ensure the NRB was not wasted on the first death.
Click through above for four key tips in relation to the RNRB changes from 6 April.
Tags: IHT | Wills And Trusts
