From April 2017 there will be an additional residence nil-rate band worth up to £175,000 per individual (£100,000 in 2017/18, £125,000 in 2018/19, £150,000 in 2019/20, and £175,000 in 2020/21), with the unused residence nil-rate band of a deceased spouse or civil partner being available to the surviving spouse.
This year’s Autumn Statement from George Osborne has seen a dramatic U-turn on tax credits helping to quell negative political feedback on a measure that was always more of a timing issue as the Universal Credit was introduced.
The capital allowances annual investment allowance (AIA) will be £200,000 from 1 January 2016. The limit is expected to remain at this level and is much higher than the £25,000 limit previously expected, although not as generous as the £500,000 limit applying up to 31 December 2015.
As announced in the December 2014 Autumn Statement, legislation will provide new rules about adding property to trusts on the same day, to target Inheritance Tax avoidance through the use of multiple trusts (based on the principles established in the Rysaffe case and commonly known as pilot trusts), which could mean that each pilot trust had its own nil rate band without reference to the other trusts.
With politicians now firmly in the run up to the May 2015 election, George Osborne’s last Autumn Statement before that election had a welcome surprise for home owners, as well as further measures for savers. However there were several more technical amendments which may also affect landowners.