The Budget

RJMS Health Care Accountants COVID-19 summary of government offers & business support guide.

Click underlined for more details.

Inheritance Tax


As previously announced, the nil rate band remains frozen at £325,000 until the end of 2020/21. The ‘residential enhancement’, announced in 2015, began to take effect for death transfers from 6 April 2017. This will apply an additional nil rate band (initially £100,000; £125,000 from 6 April 2018 to 5 April 2019; and rising to £175,000 by 2020/21) where a taxpayer’s residence is left to direct descendants. A married couple will potentially then be able to leave £1 million free of IHT to their descendants (£325,000 plus £175,000 from each parent), but the rules are complicated and their operation is as yet unfamiliar.