Machins Solicitors LLP
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Inheritance Tax

Posted: 22nd December 2015   In: Wills, Trusts and Probate

Inheritance tax (IHT) is the tax which is payable when a person dies. IHT is not payable in all situations. Below is a brief outline of some of the basic rules in relation to IHT

Standard Nil Rate Band

If H dies first leaving everything to W his nil rate band is unused on his death, and on the death of W the nil rate band available for W will be increased by 100%. As it stands, this would mean that £650,000 nil rate band would be available on the death of W. The nil rate band available on the second death is increased by the proportion of the unused nil rate band on the first death.

Main Residence Nil Rate Band

Reliefs

There are reliefs from IHT for some of the following types of property; agricultural property, ausiness property and woodland and heritage assets. Accordingly, property that falls into these categories can be extremely useful when carrying out tax and estate planning.

Please contact Alex Deller-Rust or Josie Birnie if you would like more information about the issues raised in this article or any aspect of inheritance tax planning.