Everything you need to know about inheritance tax on your home, houses and property, and the rules and thresholds for the main residence nil-rate band in 2018/19.

Do I pay inheritance tax on a property?

From April 2017, the amount you can pass on to your loved ones without having to pay any inheritance tax got a significant boost. In just a few years time, married couples and civil partners will be able to pass on as much as £1m without their heirs being hit by a big tax bill.

This means that, individually, you'll be able to pass on an extra £175,000 free of inheritance tax by 2020. But crucially, you'll only get this extra tax-free allowance if what you're passing on - your estate - includes your home. 

Why are there new rules for inheritance tax on property and homes?

Every person can pass on £325,000 before their heirs pay inheritance tax, which is 40% on anything above that amount. This is called the inheritance tax 'nil-rate band'.

If you're married or in a civil partnership, however, you can inherit any unused allowance from your husband, wife or partner. That means that married couples and civil partners can pass on £650,000. 

Most people's estate - what they are passing on to their heirs - includes a property.

And because property prices have been rising rapidly over the past few years, the government is giving people an extra allowance to prevent more people falling into the inheritance tax trap.

We can offer this service remotely online or visit clients business premises.

Contact us on 020 8343 3523 or by email at info@multiplechoiceaccountancy.com for more information.

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