Thinking of downsizing to a small property?

One of the features of the new inheritance tax rules for passing on the family home is that the relief is protected even when you are downsizing to a smaller property.

For example, if a married couple currently live in a large house worth £800,000 and downsize to a flat worth £300,000, they could give away some of the proceeds during their lifetime and yet still benefit from inheritance tax relief based on the higher valued property.  They could even sell up completely and move into a rental property and get the inheritance tax relief!

This would very much depend on the timing of such planning and, as mentioned above, the rules are very complicated, so please Contact Us to discuss how this can apply in your family circumstances.

Please also read our recent blog Are you planning on passing on the family home?