Five things clients need to know about new residence nil-rate band

Allowance initially £100,000

clock • 3 min read

The new residence nil-rate band comes into force this week and yet, according to research from Old Mutual Wealth, the great majority of people know nothing about it.

The research, which was conducted last month by Atomik Research on behalf of Old Mutual Wealth, canvassed the opinions of 1,009 respondents living in the UK, aged 45 and above and with at least £50,000 in wealth and found almost three-quarters (70%) knew nothing about the residence nil-rate band From 6 April, the measure adds an additional £100,000 inheritance tax (IHT) allowance on to the current nil-rate band of £325,000. The extra allowance is due to rise to £175,000 by 2020, which would mean by that point a couple could pass a £1m home to beneficiaries free of IHT. "The basic prin...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

Business Relief in IHT planning set to become 'even more important'

Business Relief in IHT planning set to become 'even more important'

Advisers expect to see an increase in unquoted BR in IHT planning

Isabel Baxter
clock 09 May 2024 • 1 min read
PA360: AIM investments should be 'more than an IHT planning option'

PA360: AIM investments should be 'more than an IHT planning option'

How AIM is becoming more mainstream in financial planning

Jenna Brown
clock 26 April 2024 • 2 min read
Inheritance tax receipts hit a record of £7.5bn as 2023/24 year ends

Inheritance tax receipts hit a record of £7.5bn as 2023/24 year ends

‘IHT is the tax gift that keeps on giving as record receipts have been banked’

Hope Coumbe
clock 23 April 2024 • 2 min read