As the current rules stand, you have to own over £325,000 in assets before your estate is liable to pay inheritance tax on your death. This goes up to £650,000 for married couples (but not cohabitees, I’m afraid).
In July 2015’s budget, the government introduced a new exemption which will start to be phased in next year. Essentially, the inheritance tax on the “family home” is to be scrapped on homes up to £1 million (£500,000 for singles), provided they pass to a child or grandchild of the family.
It is coming in gradually and the full £500,000/£1 million exemption will not be available until 2020, but it is great news for many families, who will not now be liable to pay inheritance tax on their death.
If you are concerned about your estate paying inheritance tax on your death, you can read our factsheet on reducing your inheritance tax bill on our website here: Inheritance Tax Planning – A Guide
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