Unsolicited telephone calls misusing our name - We do not nuisance cold call -
Have a question? Call us on 0800 1979 345
This article was published on March 20th, 2017
The new Inheritance Tax system appears at first glance to offer couples £1,000,000 tax free allowance but on closer inspection the devil is in the detail. The system is due to be phased in gradually in April and is not applicable before then.
The Tax system also only applies to people who are married or in a civil partnership at the time of death. The new inheritance tax system will not be available to co-habiting couples who are not married or in a civil partnership.
The rules relating to the new regime are actually quite complicated. For example, at the moment, inheritance tax is payable on death on assets which exceed £325,000 which is called the ‘nil rate band’. Anything above this is currently taxed at 40% but Executors have been able to apply to HMRC to add a proportion of the unused ‘nil rate band’ from one spouse or civil partner’s death to the other person’s allowance. In laymen’s terms, if you die with less than £325,000 in assets and don’t use the ‘nil rate band’ allowance, this can then be used to add to your partners/spouse ‘nil rate band’ allowance meaning that you have to have assets of over £650,000 before you pay inheritance tax.
The new regime takes into account the rise in property prices in the last few decades and has added £175,000 of property related allowance on top of the current £325,000 nil rate band threshold. This system will be phased in and be available from 2020-2021. This could mean that couples or civil partners get an extra £350,000 property allowance to add to £650,000 nil rate band.
Bottom line you may need to have assets, including property of over £1 million before you have to pay IHT. It is important to note that the property allowance is only available if the property is left to direct descendants such as children, grandchildren and step children. Childless couples would not have the benefit of the property related inheritance tax allowance. Couples who do not own property will also not benefit from the new system.
To find out if the new inheritance tax system will affect you and if so, when it will come in to effect, call us today on 0800 1979 345.
At Thorneycroft Solicitors, we aim to have your best interests at heart and tailor our services to your individual needs because every family is unique.
If you would like to know more, or would like to book an initial FREE consultation, speak to us today, we are happy to arrange to visit you at home.
This website privacy notice sets out how Thorneycroft Solicitors uses and protects any information that you give Thorneycroft Solicitors when you use this website.
Thorneycroft Solicitors is committed to ensuring that your privacy is protected. Should we ask you to provide certain information by which you can be identified when using this website, then you can be assured that it will only be used in accordance with this privacy statement.
Thorneycroft Solicitors may change this policy from time to time by updating this page. You should check this page from time to time to ensure that you are happy with any changes. This policy is effective from 01/05/2018.
What we collect
We may collect the following information:
We will collect the information directly from you via completion of our enquiry form on the website.
What we do with the information we gather
We require this information to understand your needs and provide you with a better service, and in particular for the following reasons:
We will also collect and process your personal data if you have consented to receiving marketing in respect of our services. You are able to unsubscribe or withdraw your consent at any time by emailing [email protected] or writing to ‘Marketing’ at Thorneycroft Solicitors, 9a Bridge Street Mills, Bridge Street, Macclesfield, Cheshire SK11 6QA.
We are committed to ensuring that your information is secure. In order to prevent unauthorised access or disclosure, we have put in place suitable physical, electronic and managerial procedures to safeguard and secure the information we collect online.
If you do not instruct us in relation to your legal matter, your personal details will be retained for a period of 12 months.
If we are instructed in relation to your legal matter, we will keep it in line with our data retention periods. Details of our retention period for your legal matter can be found within our Client Care Letter and/or Terms of Business, under the heading file retention.
Links to other websites
Our website may contain links to other websites of interest. However, once you have used these links to leave our site, you should note that we do not have any control over that other website. Therefore, we cannot be responsible for the protection and privacy of any information which you provide whilst visiting such sites and such sites are not governed by this privacy statement. You should exercise caution and look at the privacy statement applicable to the website in question.
You can set preferences for how Google advertises to you using the Google Ad Preferences page, and if you want to you can opt out of interest-based advertising entirely by cookie settings or permanently using a browser plugin.×