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Good News for Homeowners – Tax Relief for Families

31 Jan 2018

The law is always changing and when your area of specialism includes tax you can always count on legislation to keep you on your toes!

In 2017 we saw the introduction of the Residence Nil Rate Band (RNRB), more commonly known as the ‘family home allowance’. This is an allowance to reduce the Inheritance Tax (IHT) liability on death and it could save you thousands in death duties. Briefly:

  • The RNRB has started at £100,000 per person but is to rise by £25,000 per annum up to April 2020 when it will be £175,000 each
  • There are conditions attached – you must own (or in some cases have owned) a residence which you can offset this allowance against
  • You must leave your residence to your direct descendants – although this is wider than simply children and grandchildren
  • You can have sold or given away your house, or downsized, and still get the full amount in some cases
  • It is transferrable between spouses on death if unused – even if the first spouse died before these rules came into force!

Like many new tax rules, the legislation introducing the RNRB is not straightforward or easy to understand. If your estate is over the existing Nil Rate Band of £325,000 then you need to consider whether you are eligible for the new RNRB which could potentially save you £70,000 (and with your spouse £140,000) by 2020.

Alison Hall web profile 2016

At Hay & Kilner we have one of the largest, and most experienced private client teams in Newcastle. The advantages of having such a large team of advisers who are themselves at different stages in their careers and lives include that we can react quickly to client’s needs and changes in legislation and we can ensure that we “team up” our clients with the most appropriate legal adviser for them. A large part of our work is empathising with our clients and building a close working relationship with them and their family.

We were delighted to be recognised as Private Client Team of the Year at the Northern Law Awards last year.

I believe that our success derives from the extremely high level of service we aim to offer all our private clients.

As head of private client at Hay & Kilner, I have the privilege to work with a great team of specialist advisers who are always willing to have a free consultation by telephone before a client is committed to any action. Our breadth of expertise enables us to act for a variety of clients.  If you, or a family member, have a private client issue you would like advice on, please do not hesitate to get in touch.

If you would like further information about any of the above, please contact Alison Hall, or telephone 0191 232 8345.