ALL YOU NEED TO RUN YOUR BUSINESS
At Fawcetts, we only recommend accounting software that’s right for our clients.
That’s why we’re happy to recommend Xero Online Accounting.
Our Xero Online Accounting clients are among the 200,000 users in 100 countries worldwide, who find this secure, online accounting system makes managing their business finances much easier.
Benefits of Xero Online Accounting include:
- it is cloud-based, with secure, easy access via the internet
- Xero Online Accounting is simple to use
- it directly feeds from online banking, reducing the amount of time you spend on data entry and reconciliations
- Xero Online Accounting provides a view of cash within the business that is always up-to-date
- we can log in whenever clients need us to check or review accounts, answer questions, give proactive advice and run reports, all in real time.
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A new additional nil-rate band of £100,000 for Inheritance Tax (IHT) on main residences, when bequeathed to a direct descendent, came into effect at the start of the new tax year in April 2017.
In 2018, 2019 and 2020, this will rise to £125,000, £150,000 and £175,000 respectively, before rising in line with Consumer Prices Index (CPI) in subsequent years.
The change affects estates worth £325,000 or more, meaning that since April 2017 no IHT has been due on estates that include a main residence valued at £100,000 or more and where the total value of the estate is less than £425,000.
For such estates valued between £425,000 and £2 million, IHT is charged at 40 per cent of the value of the estate above the threshold, meaning that an estate with a total value of £525,000 is subject to IHT of £40,000 instead of the current £80,000.
Where an estate has a net value of £2 million or more, the additional nil-rate band is withdrawn at a rate of £1 for every £2 of value above this threshold. This means that the additional nil-rate band will not apply in 2017 to estates worth £2.2 million or more, so the effective threshold remains at the current £325,000. Those worth £2.1 million are only eligible for an additional nil-rate band of £50,000, making the effective threshold £375,000.
Where the deceased has moved to a main residence of lower value or sold their home since 8 July 2015 and assets of equivalent value are bequeathed to direct descendants, the estate is still eligible for the equivalent additional nil-rate band.
Both the standard and additional nil-band rates are transferable from a deceased spouse or civil partner where the second spouse or civil partner has died on or after 6 April 2017, effectively doubling the thresholds.