Legal Families miss out on IHT


Many families will pay thousands of pounds more in Inheritance Tax (IHT) if they fail to take advantage of new and increasing allowances, according to Crowe UK. Richard Bull, tax partner in the Midlands office of the


national audit, tax, advisory and risk firm, was commenting after news that death duties in the UK hit £5.2bn for the 2017-2018 tax year, the highest figure on record. The surge in IHT receipts occurred despite the introduction in April 2017 of a Residence Nil-Rate Band (RNRB). Richard Bull said: “The Government’s current plans


provide for allowances to increase each year until 2020, when it will be possible for married couples and civil partners to pass on an inheritance of up to £1m tax-free.”


‘Many wills contain Discretionary Trusts which will not automatically qualify for Inheritance Tax relief’


He pointed out this should mean that future IHT


receipts will decrease, but only if people take advantage of the new allowances. “As just one example, to benefit from the RNRB, a


qualifying residence must pass on to direct descendants such as children and grandchildren, as passing on the residence to other relatives – such as siblings – means that the additional allowance will not apply. In addition, many wills contain Discretionary Trusts which will not automatically qualify for the new Inheritance Tax relief.” This and other complications concerning assets that


may or may not qualify for IHT relief mean that families should seek advice from specialist tax advisors.


Richard Bull: New allowances


Sector Focus


Top prize for innovative website


A website providing dedicated resources for couples who live together but are not married has earned a top legal accolade. Law firm Mills & Reeve scooped


the Marketing Innovation prize at the Legal Week Awards for their website www.cohabition-law.co.uk Cohabitation-law.co.uk is the first


website of its kind in the UK and offers practical guidance to couples who are setting up home together but aren’t married. Following research


commissioned in 2017 with YouGov, the firm surveyed 1,000 cohabiting couples to highlight the myth of common law marriage and examine the financial and legal issues facing them. More than one third (35 per cent) either believed they had the same rights as married couples or didn’t know. Sue Brookes, principal associate


at Mills & Reeve, said: “The site represents the journey a relationship can take, from moving in together, buying a property and having children, and how to protect family and finances around ill- health and death. “We try to answer the questions


couples are likely to have but aren’t sure who to ask.”


July/August 2018 CHAMBERLINK 67


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