Inheritance Tax (IHT)
Currently – A payment to the government is required if the value of an individuals assets which includes property, investments, money & possessions is greater than £325,000. The amount required to be paid is 40% of the value above this threshold level. Married couples and civil partners can transfer the allowance to each other so the surviving spouse has a combined £650,000 limit allowed.
With prolonged rises in UK property prices the number of families facing large inheritance tax bills has risen dramatically year on year.
Recent changes – The government has announced that a new additional allowance for those owning property will be introduced in stages. This Family Home allowance will increase the total IHT threshold amount for individuals to £500,000 by 6th April 2020 (£1m for couples)