Inheritance tax reductions ahead of potential reform - Pembroke Financial

Inheritance tax reductions ahead of potential reform

Future increases to the residence nil rate band might be in question, thanks to the OTS review of inheritance tax. Inheritance tax (IHT) will be slightly reduced for some from 6 April 2019, but greater reforms may well arrive soon. The reduction comes from the IHT residence nil rate band (RNRB) increasing by £25,000, bringing it to £150,000 for the 2019/20 tax year. In theory that means a married couple can pass on up to £950,000 (2 x nil rate band of £325,000 + 2 x RNRB of £150,000) to their heirs free of tax.