Roll up, roll up! Pay £60,000 extra inheritance tax if you have no children!
The headline says it all. If you have no children, you potentially could pay £60,000 extra in Inheritance Tax than those with children, writes Nicola Steadman.
The Government introduced a ‘Residence Nil Rate Band’ (RNRB) for Inheritance Tax in 2017 which now allows those with children an additional £150,000 free of IHT. Each person presently has £325,000 free of IHT, and those with children have an additional £150,000 RNRB.
The RNRB can be claimed if someone owns residential property
and is leaving this to direct descendants. It is slightly more
complicated than this, and there are caveats, but my aim in this article is to
express the unfairness of it!
If you don’t have children, you aren’t able to claim this relief.
Discrimination? I think so.
We know we can’t discriminate between male and female, white and black and gay and straight. But isn’t think just the same? Just because someone can’t have children, or chooses not to have children, or indeed haven’t met the right person that they want to have children with, they have to pay more Inheritance Tax.
I’m amazed that no-one has challenged this, but I’m hoping that that the additional IHT band is removed soon to pave way for a single figure that everyone can benefit from, whatever their status.
There are numerous other Inheritance Tax reliefs that people can take advantage of, including charitable giving. If you’d like to discuss inheritance tax issues, please give me a call on 01539 721945.
Published 31 July 2019
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