The additional inheritance tax nil-rate band (NRB) for family homes will not be introduced until April 2017. It will be phased in starting at GBP100,000 in 2017 to 2018, GBP125,000 in 2018 to 2019, GBP150,000 in 2019 to 2020, and GBP175,000 in 2020 to 2021. The ordinary NRB of GBP325,000 will remain frozen until April 2021. The extra NRB will apply only where the main residence, or the proceeds from its disposal, is passed to direct descendants. It is tapered for estates worth over GBP2 million, which, according to Richard Holme TEP of Creaseys Chartered Accountants, means a marginal IHT rate of 60 per cent on certain estates.
Delay for main residence nil-rate band Inheritance Tax
The additional inheritance tax nil-rate band (NRB) for family homes will not be introduced until April 2017. It will be phased in starting at GBP100,000 in 2017 to 2018, GBP125,000 in 2018 to 2019, GBP150,000 in 2019 to 2020, and GBP175,000 in 2020 to 2021. The ordinary NRB of GBP325,000 will remain frozen until April 2021. The extra NRB will apply only where the main residence, or the proceeds from its disposal, is passed to direct descendants. It is tapered for estates worth over GBP2 million, which, according to Richard Holme TEP of Creaseys Chartered Accountants, means a marginal IHT rate of 60 per cent on certain estates.
