Beneficiaries unaware of Inheritance Tax (IHT) exemptions
A new survey has revealed that most clients are unaware of the tax liability that comes with receiving an inheritance, according to the research by Prudential.
The survey found the vast majority of clients and their family members are unaware of IHT liabilities with many thinking that the family home is exempt from IHT following the introduction of the IHT Residence Nil Rate Band (RNRB).
The RNRB was introduced in April 2017 and is being phased in over four years having started at £100,000 and increasing by £25,000 each tax year until 2020 when it will hit a ceiling of £175,000. This is in addition to the current overall nil rate IHT threshold of £325,000 (for tax year 2018/19) which covers a main residence passed down to direct descendants.
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