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Registered to carry on Audit Work in the UK and regulated for a range of Investment Business Activities by The Institute of Chartered Accountants in England and Wales
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AND CHANGES FOR 2017/2018 previously announced
(Subject to details in the Finance Bill)
Ellis Atkins have taken all due care in the presentation of these notes. No responsibility for loss occasioned to any person or company acting or refraining from action as a result of any material in these notes can be accepted by Ellis Atkins, its partners or staff. Please contact us or your own professional advisor for advice specific to your circumstances.

The starting point for Inheritance Tax, the “nil rate band,” remains at £325,000 and will do so until the end of 2020/21.

For married couples and civil partners, when the second death occurs, up to two nil rate bands, both at the amount applying on the date of the second death, are available to the estate.

The single rate on death of 40% is unchanged.

From 6 April 2017 an Inheritance Tax Main Residence nil rate band allowance has been introduced to be used against a home (or an interest in a home) provided the property is left to a direct descendant which includes a step child, adopted child or foster child of the deceased and their lineal descendants.

Any unused allowance will be transferrable between spouses or civil partners if it is unused on the first death. In 2017/18 the allowance will be £100,000, rising incrementally to reach £175,000 by 2020/21.

Deemed Domicile

From 5 April 2017 an individual will become deemed domiciled in the UK for IHT if they have been resident in at least fifteen of the previous twenty tax years. Additionally individuals who were born in the UK but have acquired a domicile of choice will be deemed to be domiciled while they are UK resident. Individuals who become deemed domiciled will be able to rebase their non UK asset values at that date (if the remittance basis charge had previously been paid)