Downsizing to a smaller property
One of the features of the new inheritance tax rules for passing on the family home is that the relief is protected even when you downsize to a smaller property.
For example if a married couple currently live In a large house worth £800,000 and downsize to a flat worth £300,000 they could give away some of the proceeds during their lifetime and yet still benefit from inheritance tax relief based on the higher valued property. They could even sell up completely and move into a rental property and get the inheritance tax relief!
This would very much depend on the timing of such planning and, as mentioned previously, the rules are very complicated so contact us to discuss how this can apply in your family circumstances.
If you would like more information, or would like to discuss your tax affairs in general, please contact our Tax Partners Steve Crompton or Chris Barrington on the details below:
Partner – Head of Tax
direct dial: 01942 292541
mobile: 07790 840394
direct dial: 01942 292505
mobile: 07730 436070