Reasons to choose Wilson Browne
Wills & Probate
Estate Duty, also known as “death tax”, is one of the predecessors of Inheritance Tax in 1952. Estate Duty applied differently from Inheritance Tax and the exemptions and reliefs also differed, for instance there was no spouse exemption until 22 March 1972! This meant that any assets left to a surviving spouse on death would have been subject to Estate Duty.
Now all assets passing on death to a surviving spouse or civil partner, or given by lifetime gift, are exempt from Inheritance Tax in the case of a couple who are both UK domiciled.
Further, everyone now has an allowance which they can leave free of Inheritance Tax on their death. This amount is referred to as the Nil Rate Band and is currently £325,000. If they do not use this allowance then this can be transferred to their spouse or civil partner when they die. This is called the Transferable Nil Rate Band. This means that when the second person passes away, their Estate could potentially have up to a £650,000 tax free allowance.
Any value over this will be taxed at 40% if no further exemptions or reductions apply.
In order to claim the Transferable Nil Rate Band, the Personal Representatives must ensure all the relevant paperwork is submitted to HM Revenue & Customs.
Matters such as these are quite complex, however our Private Client Team are here to assist. Call 0800 088 6004.
How does this affect you in 2022?