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Let’s face it, none of us like paying tax but unfortunately it’s a fact of life. Whilst many of us can accept being taxed in our lifetime, what is perhaps more upsetting is that when we die, the taxman may get his hands on much of our estate, reducing the amount that can be passed to our loved ones.

Inheritance Tax (IHT) at a glance

  • Inheritance Tax is levied at a rate of 40% on the excess of the estate over the £325,000 ‘nil rate band’.
  • The nil rate band has been frozen at its current level of £325,000 until April 2021.
  • If you’re married or in a civil partnership and one partner doesn’t use their full nil rate band at death, it’s transferable to the survivor’s estate. The precise rules are complex, but the effective result is that a couple currently has a combined nil rate band of up to £650,000 (£325,000 x 2).
  • In April 2017, an IHT tax break was introduced on the family home allowing an individual to transfer an additional £100,000 to their direct descendants. This increased to £125,000 in the 2018/19 tax year and will increase further to £150,000 in the 2019/20 tax year and £175,00 in the 2020/21 tax year.

It could be that just with your house value alone you’re already over the IHT band.

How can the Family Building Society help?

Poor planning could cost your beneficiaries many thousands of pounds in Inheritance Tax. However, it is possible to reduce significantly the amount of IHT your beneficiaries pay, or at best pay none at all.

We have partnered with specialists, Quilter Financial Advisers, to help you plan efficiently to reduce your IHT bill. Quilter can accommodate your changing requirements through different life stages.

The Financial Conduct Authority does not regulate tax or estate planning.


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Family Building Society
Ebbisham House
30 Church Street
Surrey KT17 4NL
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