New Residence Nil Rate Band

Author: Heather Warnock
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From April 2017 a new IHT- free allowance has being  introduced. It is to be known as the Residence Nil Rate Band (RNRB) and will apply if you leave your residence to your “direct descendants”.

The objective of the policy according to the Government is to “reduce the burden of IHT for most families by making it easier to pass on the family home to direct descendants without a tax charge.”

For some years now the nil rate band has been fixed at £325,000 and it looks like it will remain set at this amount for the next few years. At the moment IHT is charged at 40% on the value of a deceased person’s estate which exceeds the nil rate band. Where spouses or civil partners leave their estates to each other the nil rate band can be transferred giving a maximum of £650,000 IHT free.The RNRB when introduced can also be transferred between spouses and civil partners.

If you would like more information or to find out whether you should consider revising your Will to benefit from this new allowance, please contact me, Heather Warnock, at heather@mitchells-roberton.co.uk or by telephoning 0141 552 3422.

Heather Warnock

About Heather Warnock

Heather joined Mitchells Roberton in March 2013 as a Financial Guardian Administrator having graduated with a first class honours degree in law from Glasgow Caledonian University in 2011 and thereafter having completed her Diploma in Legal Practice at Strathclyde University in 2012. She was taken on as a trainee of the firm and started on 2nd June 2014. Heather has now completed her traineeship and is staying with us as a qualified assistant working in the Private Client Department. She will be assisting with succession and trust issues, the administration of estates and the preparation of Wills and Powers of Attorney. Heather is consistently client focused and is skilful in dealing with clients in circumstances which are frequently emotionally charged.Currently Heather is studying for the STEP Diploma in Trusts and Estates-Scotland and has passed her first exam Wills and Executries – Law and Practice with Distinction. Heather who is originally from Northern Ireland loves going home to visit her family whenever she can. She enjoys live comedy and the theatre. She is an excellent cook and expert baker….most welcome skills for our office. Email: hw@mitchells-roberton.co.uk

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