Inheritance Tax.
From 2017/18 each party to a marriage will get extra inheritance tax relief if they have a house in their estate when they die. This extra relief started at £100,000 each and rises to £175,000 each in 2020/21. A theoretical allowance of £1 million will be available between a married couple which will be transferable if unused by one spouse to his or her survivor.
If you sell the property to downsize and invest in something else you retain the relief at the previous level albeit that records will need to be kept to demonstrate these steps taken.
If the total estate exceeds £2 million the extra relief gets progressively withdrawn. This will no doubt disappoint many.
From 2017/18 each party to a marriage will get extra inheritance tax relief if they have a house in their estate when they die. This extra relief started at £100,000 each and rises to £175,000 each in 2020/21. A theoretical allowance of £1 million will be available between a married couple which will be transferable if unused by one spouse to his or her survivor.
If you sell the property to downsize and invest in something else you retain the relief at the previous level albeit that records will need to be kept to demonstrate these steps taken.
If the total estate exceeds £2 million the extra relief gets progressively withdrawn. This will no doubt disappoint many.
