New inheritance tax rules - Gov guide

From 6 April 2017, many individuals will be offered a family home allowance so they can pass their home on to their children or grandchildren tax-free after their death.

The family home allowance will be added to the existing £325,000 Inheritance Tax threshold, meaning the total tax-free allowance will end up by 2020-21 as:

• up to £500,000 for an individual
• up to £1 million for a surviving spouse or civil partner, by 2020-21

This additional allowance will be staggered as follows -

• £100,000 in 2017 to 2018
• £125,000 in 2018 to 2019
• £150,000 in 2019 to 2020
• £175,000 in 2020 to 2021

The allowance will be gradually withdrawn for estates worth more than £2 million.

Read the policy paper - Inheritance Tax: main residence nil-rate band and the existing nil-rate band

New #inheritancetax rules come into force on Thursday that ensure people can pass on their family home https://t.co/KjNeIERQVc pic.twitter.com/w4kQVUJcYK

— HM Treasury (@hmtreasury) April 3, 2017

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