New figures from the HMRC show that inheritance tax receipts have grown by 13 % over the past 12 months, a record increase, reaching £5.3 billion in the year to end of February 2018.
The increase in inheritance tax (IHT) has been partly attributed to the rise in property prices. It is also possible that this is because of increasing death rates.
However, the introduction of a residence nil rate band last year gives individuals the opportunity to reduce the amount of IHT paid. For deaths from 6 April 2018, this will allow an additional £125,000 of an estate to pass before IHT is paid, if their main residence is passed to qualifying descendants. This allowance will increase each year until 2020/21, when £175,000 will be available (£350,000 for a couple). This means that after that date, a couple will be able to pass up to £1,000,000 before IHT becomes payable.
Use of this additional allowance can be achieved through suitable arrangements in your Wills. Even if a person has died without a Will which allows these reliefs to be utilised, it may be possible to vary the terms of the Will to do so.
At Jordans Solicitors we are pleased to assist you, both in relation to planning your Will, or dealing with probate issues after death.
We are on hand to help with any queries you may have in regards to Wills and Probate issues. Our wills and probate solicitors are based in Wakefield, Dewsbury, and Horsforth. Feel free to call us on 0330 300 1103 or request a call back by clicking here.