With more UK families paying inheritance tax than ever before, the government has introduced new rules for the inheritance tax free allowance.
As house prices soar, many families are inheriting properties which are expensive enough to push them into the inheritance tax bracket. This is why the government are changing the allowances relating specifically to a main residence. The new family home allowance will add an extra £350,000 of inheritance tax-free allowance for married couples. This will bring down the tax for millions of people who inherit property where the price has been dramatically increased due to the recent surge in house prices.
To take advantage of this reduced rate, there are a number of complex rules and criteria to meet. This is Money details the current rules and how they will be changed as of April 2017.