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The new relief is withdrawn by £1 for every £2 the estate exceeds £2m (before reliefs such as Business or Agricultural Property Relief), so for one individual it is lost after £2.35m, or £2.7m for a surviving spouse.
If both spouses have estates worth say £1.5m, the first spouse to die might want to ensure that sufficient assets pass to beneficiaries other than the surviving spouse so that, on the second death, the RNRB is not restricted or lost completely because the second spouse has inherited assets on the first death and has an estate worth say £3m on the second death, thus losing the entitlement to the RNRB.
Tags: IHT | Wills And Trusts
