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Let’s face it, none of us like paying tax but unfortunately it’s a fact of life. Whilst many of us can accept being taxed in our lifetime, what is perhaps more upsetting is that when we die, the taxman may get his hands on much of our estate, reducing the amount that can be passed to our loved ones.

Inheritance Tax (IHT) at a glance

  • Inheritance Tax is levied at a rate of 40% on the excess of the estate over the £325,000 ‘nil rate band’.
  • The nil rate band has been frozen at its current level of £325,000 until April 2021.
  • If you’re married or in a civil partnership and one partner doesn’t use their full nil rate band at death, it’s transferable to the survivor’s estate. The precise rules are complex, but the effective result is that a couple currently has a combined nil rate band of up to £650,000 (£325,000 x 2).
  • HMRC will be gradually introducing an additional ‘main residence nil rate band' from April 2017. This will be worth up to £175,000 per person by 2020. However, there will be a number of restrictions over how this allowance can be used.

It could be that just with your house value alone you’re already over the IHT band.

How can the Family Building Society help?

Poor planning could cost your beneficiaries many thousands of pounds in Inheritance Tax. However, it is possible to reduce significantly the amount of IHT your beneficiaries pay, or at best pay none at all.

We have partnered with specialists Charles Derby to help you plan efficiently to reduce your IHT bill. Charles Derby can accommodate your changing requirements through different life stages.

The Financial Conduct Authority does not regulate tax or estate planning.


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 In partnership with Charles Derby       
Family Building Society
Ebbisham House
30 Church Street
Surrey KT17 4NL
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