Property and inheritance tax

Inheritance tax (IHT) is sometimes called a ‘voluntary tax’ as there are a number of ways to minimise liability such as donations to charity and making use of gift exemptions. From 6 April 2017 people will potentially have another tool at their disposal: the ￡100,000 residence nil-rate band (RNRB). The RNRB (which is also sometimes referred to as the family home allowance) will apply when a family home is passed on to a direct descendant. The allowance will increase by ￡25,000 each tax year until it reaches ￡175,000 in 2020/21. After that the (RNRB_ will increase in line with the CPI measure of inflation. For more information please see our factsheet Property & Inheritance Tax