The long-awaited IHT Residence Nil Rate Band allowance comes into effect on 6th April 2017 which effectively means that by 2020 a married couple or civil partnership will potentially benefit from a combined inheritance tax allowance of £1 million.
The new allowance will initially be £100,000 each (2017/18) and will increase by £25,000 in each of the following three tax years to £175,000 by 2020. A married couple or civil partnership could therefore effectively be entitled to the basic nil rate band of £325,000 x 2 = £650,000 plus £175,000 x 2 = £350,000. This additional allowance will not however apply to larger estates.
To read more and find about the conditions involved please click on the following link