NIL RATE BAND TRUSTS

Inheritance Tax Mitigation​

• For some people, a Nil Rate Band Discretionary Trust can be beneficial. This may assist you if you:

  • Have total assets likely to exceed £2m, meaning that you will start to lose the benefit of the Residence Nil Rate Band.

  • Are a widow or widower with an additional Nil Rate Band as a result of your previous marriage. You can only pass one Nil Rate Band to your current spouse so your additional Nil Rate Band must pass to someone else.

  • Are a business person or farmer seeking to preserve your Business Property Relief (BPR) or Agricultural Property Relief (APR).

 

Further information in relation to the tax treatment of a Discretionary Trust can be found here.