Are you doing whole of life planning?

Are you doing whole of life planning?

Inheritance Tax Allowances

IHT was introduced in the UK in 1986 at £71,000 which was great news as the average UK house at the time was £32,000 and even in London the average price was £55,000. Over time of course both the IHT allowance and the average house price have increased giving you todays rate of £325,000 locked in until 2030, meaning it has been static for 21 years. So, in 2017 an additional rate was introduced, RNRB, adding an additional £175,000 of allowances specifically for your home. All of this great news because the UK average house price is estimated to be £297,000. So, the lesson here is if you are an average person with an average house then all is good. If you are an above average person with and above average house, then perhaps we should talk.