The new tax year commencing on 6th April 2009 brings with a new range of tax relief, rates and allowances. These are subject to change – please check current rates with an Accountant before acting on them.
In this second part of a three part series we will consider the main allowances and reliefs which can be used to reduce your liability to Inheritance Tax.
The Nil Rate Band currently stands at £312,000 – on the first £312,000 of your net taxable estate IHT is payable at 0% – hence the name “Nil Rate Band”.
In the first of a three part series we will consider Inheritance Tax – a tax previously deemed to be paid by “those who trust their heirs less than they trust the government”!
In part one we will consider what the tax is, how much is payable and the situation facing married couples.