This article from Money Observer is a useful reminder of some of the key features of the new inheritance tax allowance on property.
From next week, individuals start to receive an additional nil-rate band for inheritance tax on their home, known as the residence nil rate band.
When fully introduced in 2020/21, it will mean married couples and civil partners will have the potential to pass on up to £1m of property assets entirely free of inheritance tax.
Money Observer remind readers that you can choose which property you want to set the allowance against, that the allowance will still apply even if the property has already been sold, outstanding mortgage borrowing is deducted before the allowance is applied, the allowance only applies when the property is left to direct descendants, and the allowance is going to rise gradually over the next four years.
With the introduction of this new residence nil rate band, now is a good time to revisit your financial planning and your inheritance tax planning, especially if you have previously included a discretionary nil-rate band trust in your will.
Seventy per cent of respondents knew nothing about the new rule, and even among those who considered themselves knowledgeable got some of the details wrong.