Inheritance Tax Break
August 11th, 2015
The additional inheritance tax allowance (on top of the current £325,000 per person) for ‘the family home’ announced in the summer budget has prompted many questions, said the Telegraph and it tried to answer them.
The allowance starts at £100,000 in 2017, rising to £175,000 by 2020, at which point a married couple will have a total inheritance allowance of £1 million. But will they? Experts point out that they will get the extra allowance only if they are married, only if they have children to whom they leave the house, only if the house is owned in joint names, and the house has to be worth more than the extra allowance. There are further complications if the couple own a house but downsize after July 2015.
Fortunately there are a further two years in which to work out all the wrinkles in this absurdly complicated tax break