Inheritance Tax Videos
The tax position on death can be extremely harsh for any individual who has a net Estate value of more than £500,000 or for couples of more than £1 million. With high property prices and frozen allowances, this affects many families and this number is predicted to grow. However, it is not just about tax, as many people want to leave their affairs in order and with clear legacy goals attached. This video explores the subject by explaining that Estate Planning is different from Inheritance Tax Planning, and how the two interact.
The Residence Nil Rate Band (RNRB) is the added allowance that many people enjoy which increases the “Nil Rate” of tax applied to an estate when it becomes subjected to Inheritance Tax (IHT). In the right circumstances, this can raise the level of Nil Rate from £325,000 to £500,000 for each individual and from £650,000 to £1 Million for a couple.
The RNRB applies to residential property, but this extra amount, which can save a big chunk of tax payable is subject to quite a few conditions and it is feasible that it can be lost or become reduced without proper pre-planning.
This is a video that both explains how the RNRB works and also the things to look out for and consider if you are in the position where it may apply.
Please note that the Financial Conduct Authority (FCA) does not regulate tax planning and trusts.