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Downsizing relief provisions for inheritance tax

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Property pinball – 2

KEY POINTS

  • The downsizing provisions may apply if a person dies on or after 6 April 2017.
  • Relief may be given if their only residence has been disposed of or they have downsized.
  • The lower-value residence and other assets must have been ‘closely inherited’.
  • Detailed understanding of property ownership history will be essential.
  • The relief will be tapered if the estate exceeds £2m.

In ‘Property pinball’ (Taxation 26 January 2017) we looked at the main provisions of the inheritance tax residence nil-rate band (RNRB) which will apply from 6 April 2017. As mentioned advisers dealing with estate planning or will drafting will need to be aware of this new and valuable tax relief to ensure that their clients receive the full advantage of it. Last...

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