A Legal Remedy to Reducing your Inheritance Tax Bill

Mandy Potter from Bartons explains how to make the most of minimising your Inheritance Tax bill in 2018.
From the 6th April 2018 individuals leaving their family home to children or grandchildren will be entitled to an extra £25,000 allowance free from inheritance tax, if a suitable Will is in place and the total estate is worth less than £2million.
In the tax year 2017, if you left your family home and your estate to your children or grandchildren you only paid inheritance tax on any assets you had above £425,000. As scheduled, from the 6th April 2018 the new tax year brings with it an extra £25,000 tax allowance. This means individuals only pay inheritance tax on assets worth more than £450,000.
In order to be entitled to the extra tax allowance, it is advisable to have a Will in place to ensure your assets pass to your children and grandchildren upon death to avoid missing out on the available tax allowance.
Further changes are on the horizon and the inheritance tax allowance for unmarried individuals is due to increase to £500,000. Likewise, the tax allowance will be £1million between married couples before any tax is payable. These tax reducing measures are proving to be a success with a noticeable increase in clients reviewing and changing their Wills to ensure they meet the requirements for the extra tax free allowance.
If you would like to find out more information about the inheritance tax changes and whether your Wills are in order to utilise this extra tax free allowance, please contact Mandy Potter of Bartons on 01548 855655.