{"id":3122,"date":"2017-11-10T11:39:12","date_gmt":"2017-11-10T11:39:12","guid":{"rendered":"https:\/\/smh.group\/?p=3122"},"modified":"2023-02-15T13:52:56","modified_gmt":"2023-02-15T13:52:56","slug":"1-million-tax-free-on-death-fact-or-fiction","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/","title":{"rendered":"\u00a31 Million Tax Free on Death \u2013 Fact or Fiction?"},"content":{"rendered":"

Those of you with a good memory may recall David Cameron\u2019s promise back in 2007 to increase the Inheritance Tax threshold to \u00a31 million for married couples. The 2015 Budget finally realised this aim, but although the headlines look appealing it is worth bearing in mind that terms and conditions apply.<\/p>\n

The new allowance, known as the \u201cResidence Nil Rate Band\u201d will increase an individual\u2019s Inheritance Tax allowance from \u00a3325,000 to \u00a3500,000 on death, giving us the magic \u00a31 million figure for couples.<\/p>\n

However, here come the main conditions:-<\/strong><\/p>\n

    \n
  1. It can only be set against property owned and occupied by the deceased, not assets generally or buy-to-let or investment properties.<\/li>\n
  2. \u00a0The full allowance will not be available until April 2020. It can be claimed in respect of deaths from April 2017 onwards and will start at an additional \u00a3100,000 allowance, increasing by \u00a325,000 per year up to \u00a3175,000, making \u00a3500,000 when added to the standard \u00a3325,000.<\/li>\n
  3. \u00a0It is only available if the property is passing down the generations to children or grandchildren (including stepchildren, adopted and foster children) referred to as \u201clineal descendants\u201d.\u00a0\u00a0\u00a0 Siblings\u00a0\u00a0\u00a0\u00a0 and other relatives, unmarried partners and their children \u2013 all of these will miss out.<\/li>\n
  4. The property must pass directly<\/u> to your lineal descendants. Many types of trust funds for these relatives will not be eligible to claim the allowance.<\/li>\n
  5. Estates worth over \u00a32 million lose the extra relief on a sliding scale of \u00a31 for every \u00a32 over \u00a32 million. This means that in this tax year an estate of \u00a32.2 million will not be eligible for the additional rate at all.<\/li>\n<\/ol>\n

    In summary there are winners and losers with respect to this tax relief<\/a>. For example, those who have no children, have large estates or rent their homes will pay more tax than they might otherwise.<\/p>\n

    But worry not, there are numerous planning options available to individuals and couples to ensure they fully utilise their tax free allowance. Making a Will or reviewing existing Wills to ensure their provisions do not inadvertently waste this additional allowance is a good place to start.<\/p>\n

    Also, if you are considering moving house or downsizing in the future, make sure you take advice beforehand to ensure your tax free allowance can be maximised for the benefit of your loved ones.<\/p>\n

    Sutton McGrath Hartley is a multi-disciplinary firm of Accounting & Business Advisory, financial advisers<\/a> and lawyers offering comprehensive financial expertise for all business, personal and family interests. Our specialist Wills & Probate department can help with the issues around the Residence Nil Rate Band. To discuss your requirements please contact Ben Schofield on 0114 266 4432 or bschofield@smh.group<\/a>.<\/p>\n

     <\/p>\n

    <\/a>\"Ben<\/a><\/p>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    Those of you with a good memory may recall David Cameron\u2019s promise back in 2007 to increase the Inheritance Tax threshold to \u00a31 million for married couples. The 2015 Budget finally realised this aim, but although the headlines look appealing it is worth bearing in mind that terms and conditions apply. The new allowance, known as the \u201cResidence Nil Rate Band\u201d will increase an individual\u2019s Inheritance Tax allowance from \u00a3325,000 to \u00a3500,000 on death, giving us the magic \u00a31 million figure for couples. However, here come the main conditions:- It can only be set against property owned and occupied by the deceased, not assets generally or buy-to-let or investment properties. \u00a0The full allowance will not be available until April 2020. It can be claimed in respect of deaths from April 2017 onwards and will start at an additional \u00a3100,000 allowance, increasing by \u00a325,000 per year up to \u00a3175,000, making \u00a3500,000 when added to the standard \u00a3325,000. \u00a0It is only available if the property is passing down the generations to children or grandchildren (including stepchildren, adopted and foster children) referred to as \u201clineal descendants\u201d.\u00a0\u00a0\u00a0 Siblings\u00a0\u00a0\u00a0\u00a0 and other relatives, unmarried partners and their children \u2013 all of these will miss out. The […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4,2],"tags":[5,92,13,17,8,15,63],"class_list":["post-3122","post","type-post","status-publish","format-standard","hentry","category-chartered-tax-advisers","category-wills-probate","tag-asset-protection-trusts","tag-estate-planning","tag-inheritance-tax","tag-lasting-power-of-attorney","tag-probate","tag-wills","tag-wills-probate"],"acf":[],"yoast_head":"\n\u00a31 Million Tax Free on Death \u2013 Fact or Fiction? - SMH Group<\/title>\n<meta name=\"description\" content=\"Learn about the so-called "Residence Nil Rate Band" allowance, how it could affect you, and the terms and conditions that apply, in our blog post.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"\u00a31 Million Tax Free on Death \u2013 Fact or Fiction? - SMH Group\" \/>\n<meta property=\"og:description\" content=\"Learn about the so-called "Residence Nil Rate Band" allowance, how it could affect you, and the terms and conditions that apply, in our blog post.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/\" \/>\n<meta property=\"og:site_name\" content=\"SMH Group\" \/>\n<meta property=\"article:published_time\" content=\"2017-11-10T11:39:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-02-15T13:52:56+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/suttonmcgrathhartley.3be.co.uk\/wp-content\/uploads\/2016\/07\/ben-300x291.jpg\" \/>\n<meta name=\"author\" content=\"Brendan Hall\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Brendan Hall\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/\"},\"author\":{\"name\":\"Brendan Hall\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e\"},\"headline\":\"\u00a31 Million Tax Free on Death \u2013 Fact or Fiction?\",\"datePublished\":\"2017-11-10T11:39:12+00:00\",\"dateModified\":\"2023-02-15T13:52:56+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/\"},\"wordCount\":432,\"image\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/#primaryimage\"},\"thumbnailUrl\":\"http:\/\/suttonmcgrathhartley.3be.co.uk\/wp-content\/uploads\/2016\/07\/ben-300x291.jpg\",\"keywords\":[\"asset protection trusts\",\"estate planning\",\"Inheritance Tax\",\"Lasting Power of Attorney\",\"probate\",\"wills\",\"wills & probate\"],\"articleSection\":[\"SMH Chartered Tax Advisers\",\"SMH Wills & Probate\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/\",\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/\",\"name\":\"\u00a31 Million Tax Free on Death \u2013 Fact or Fiction? - SMH Group\",\"isPartOf\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/#primaryimage\"},\"thumbnailUrl\":\"http:\/\/suttonmcgrathhartley.3be.co.uk\/wp-content\/uploads\/2016\/07\/ben-300x291.jpg\",\"datePublished\":\"2017-11-10T11:39:12+00:00\",\"dateModified\":\"2023-02-15T13:52:56+00:00\",\"author\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e\"},\"description\":\"Learn about the so-called \\\"Residence Nil Rate Band\\\" allowance, how it could affect you, and the terms and conditions that apply, in our blog post.\",\"breadcrumb\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/#primaryimage\",\"url\":\"http:\/\/suttonmcgrathhartley.3be.co.uk\/wp-content\/uploads\/2016\/07\/ben-300x291.jpg\",\"contentUrl\":\"http:\/\/suttonmcgrathhartley.3be.co.uk\/wp-content\/uploads\/2016\/07\/ben-300x291.jpg\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/devstagesite.co.uk\/smhgroup\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"\u00a31 Million Tax Free on Death \u2013 Fact or Fiction?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#website\",\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/\",\"name\":\"SMH Group\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/devstagesite.co.uk\/smhgroup\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e\",\"name\":\"Brendan Hall\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/fe3e3bb96786e02b14d97d1c006fde60e4080a2841fd919bafa62c4cc1c65688?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/fe3e3bb96786e02b14d97d1c006fde60e4080a2841fd919bafa62c4cc1c65688?s=96&d=mm&r=g\",\"caption\":\"Brendan Hall\"},\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/author\/brendan-hall\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"\u00a31 Million Tax Free on Death \u2013 Fact or Fiction? - SMH Group","description":"Learn about the so-called \"Residence Nil Rate Band\" allowance, how it could affect you, and the terms and conditions that apply, in our blog post.","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_GB","og_type":"article","og_title":"\u00a31 Million Tax Free on Death \u2013 Fact or Fiction? - SMH Group","og_description":"Learn about the so-called \"Residence Nil Rate Band\" allowance, how it could affect you, and the terms and conditions that apply, in our blog post.","og_url":"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/","og_site_name":"SMH Group","article_published_time":"2017-11-10T11:39:12+00:00","article_modified_time":"2023-02-15T13:52:56+00:00","og_image":[{"url":"http:\/\/suttonmcgrathhartley.3be.co.uk\/wp-content\/uploads\/2016\/07\/ben-300x291.jpg","type":"","width":"","height":""}],"author":"Brendan Hall","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Brendan Hall","Estimated reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/#article","isPartOf":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/"},"author":{"name":"Brendan Hall","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e"},"headline":"\u00a31 Million Tax Free on Death \u2013 Fact or Fiction?","datePublished":"2017-11-10T11:39:12+00:00","dateModified":"2023-02-15T13:52:56+00:00","mainEntityOfPage":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/"},"wordCount":432,"image":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/#primaryimage"},"thumbnailUrl":"http:\/\/suttonmcgrathhartley.3be.co.uk\/wp-content\/uploads\/2016\/07\/ben-300x291.jpg","keywords":["asset protection trusts","estate planning","Inheritance Tax","Lasting Power of Attorney","probate","wills","wills & probate"],"articleSection":["SMH Chartered Tax Advisers","SMH Wills & Probate"],"inLanguage":"en-GB"},{"@type":"WebPage","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/","url":"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/","name":"\u00a31 Million Tax Free on Death \u2013 Fact or Fiction? - SMH Group","isPartOf":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#website"},"primaryImageOfPage":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/#primaryimage"},"image":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/#primaryimage"},"thumbnailUrl":"http:\/\/suttonmcgrathhartley.3be.co.uk\/wp-content\/uploads\/2016\/07\/ben-300x291.jpg","datePublished":"2017-11-10T11:39:12+00:00","dateModified":"2023-02-15T13:52:56+00:00","author":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e"},"description":"Learn about the so-called \"Residence Nil Rate Band\" allowance, how it could affect you, and the terms and conditions that apply, in our blog post.","breadcrumb":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/#primaryimage","url":"http:\/\/suttonmcgrathhartley.3be.co.uk\/wp-content\/uploads\/2016\/07\/ben-300x291.jpg","contentUrl":"http:\/\/suttonmcgrathhartley.3be.co.uk\/wp-content\/uploads\/2016\/07\/ben-300x291.jpg"},{"@type":"BreadcrumbList","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/1-million-tax-free-on-death-fact-or-fiction\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/devstagesite.co.uk\/smhgroup\/"},{"@type":"ListItem","position":2,"name":"\u00a31 Million Tax Free on Death \u2013 Fact or Fiction?"}]},{"@type":"WebSite","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#website","url":"https:\/\/devstagesite.co.uk\/smhgroup\/","name":"SMH Group","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/devstagesite.co.uk\/smhgroup\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Person","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e","name":"Brendan Hall","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/fe3e3bb96786e02b14d97d1c006fde60e4080a2841fd919bafa62c4cc1c65688?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/fe3e3bb96786e02b14d97d1c006fde60e4080a2841fd919bafa62c4cc1c65688?s=96&d=mm&r=g","caption":"Brendan Hall"},"url":"https:\/\/devstagesite.co.uk\/smhgroup\/author\/brendan-hall\/"}]}},"_links":{"self":[{"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/posts\/3122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/comments?post=3122"}],"version-history":[{"count":1,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/posts\/3122\/revisions"}],"predecessor-version":[{"id":24397,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/posts\/3122\/revisions\/24397"}],"wp:attachment":[{"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/media?parent=3122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/categories?post=3122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/tags?post=3122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}