I understand that the rules for inheritance tax have changed. My
father has recently passed away, he bequeathed his home to me and
it has been valued at £450,000. Will I need to pay
inheritance tax?
The normal cap for Inheritance tax remains unchanged at
£325,000. This is called the 'nil rate band' (NRB).
Remember, you should always check for any gifts made in the seven
years before death as these may reduce the available NRB. If your
father was a widower, then it's also possible that his estate
can carry over any unused NRB from his late wife's estate. The
new rules introduced in April created a new tax relief called the
'residence nil rate band' (RNRB). This is separate from the
normal NRB. The new rules only apply to individuals who leave their
home - or their share of a jointly owned home to their direct
descendants, meaning children, grandchildren, etc. This gift of the
home will be free of tax up to a value of £100,000. This
means that the first £425,000 of
