As Leeds-based financial advisers, the team here at Heritage Wealth Solutions are constantly keeping ourselves up-to-date with all of the latest finance news.
We were, of course, keenly monitoring the Summer Budget presented by Chancellor George Osborne earlier this month – particularly his plans to raise the inheritance tax threshold from £325,000 per person to £500,000.
What does this mean?
In short, if you currently own a property worth up to £1 million then you will be able to leave it to your children or grandchildren entirely free of inheritance tax from April 2020.
These changes will start to come into effect from 6th April 2017, when each individual will be offered a ‘family home allowance’ so that their property – without ‘death duty’ – can be passed on to their loved ones after passing.
Simply added to the existing tax-free allowance of £325,000, this will be worth £100,000 in 2017/18, before being increased to £125,000 in 2018/19, £150,000 in 2019/20, and finally £175,000 in 2020/21.
Mr Osborne and Prime Minister David Cameron commented on the change in a joint article for The Times, saying: “It can only be right that when you’ve worked hard to own your own home, it will go to your family and not the taxman.”
As with all new rules, the mechanics are often complicated, and it’s not always easy to work out how they will actually apply in practice.
Should you live in Yorkshire and need any assistance or advice on this, Heritage Wealth Solutions can provide inheritance tax planning. Here we aim to strike a balance between reducing exposure to tax, sustaining control and managing the flow of wealth across different generations.
Due to there not being a ‘one size fits all’ solution in this sector, please don’t hesitate to get in touch with one of our financial planners to discuss your personal situation.
You can do so by calling our Leeds office on 0113 350 2080.