Following the Summer Budget announcement today that the Conservative Government will introduce an additional nil-rate band (NRB) per person, Pauline Davies, Wills and Probate Solicitor at PCB Solicitors, is urging local residents to review their will and ensure they’re prepared for the changes.
Under the new legislation which is set to be rolled out in April 2017, married couples will be each offered an additional £175,000 allowance to enable them to be able to pass the ‘family home’ on to their children tax-free after their death. The new allowance will be transferable on the death of one spouse and can be added to the remaining partners’ existing £325,000 transferable allowance which will bring the tax-free total for home-owning married couples to £1 million.
Pauline explained: “The news today that the Government will raise the nil-rate band is certainly welcome, and will help many families who have involuntarily been drawn into the inheritance tax bracket due to rising house prices. Even where couples have ‘downsized’ to a smaller property once their children have left, they will get the allowance up to the value of their previous home.
“Sadly this only applies when the property is left to children or grandchildren so may not benefit siblings who live together, although there are other options including trusts that may be of assistance in those circumstances. It may also be of assistance to farmers as a farmhouse does not always get Agricultural Relief for inheritance tax, although this will depend upon the small print.
“It’s worth bearing in mind however, the new reforms won’t come into force until after April 2017, so it’s still important local people review their current will and consider whether it’s appropriate now and in light of the changes in two years’ time. Drawing up a will is still the best way to divide assets and ensure they go to the rightful individuals – without leaving the law to decide,” Pauline concluded.
PCB Solicitors LLP is a modern partnership, with offices in Shrewsbury, Broseley, Church Stretton, Craven Arms, Knighton, Ludlow, Telford, and Worcester. While they have origins back to 1860, the firm is forward-looking and offers a full range of legal advice for both individuals and businesses, including property, family advice and childcare matters, wills, trusts, probate and estate planning, accident and personal injury, litigation, criminal law and corporate and business law.
For further information about PCB Solicitors’ complete range of legal services, please contact the Shrewsbury Head Office on 01743 248148 or visit the website www.pcblaw.co.uk.
