Sharing Inheritance Tax Allowances
Published / Last Updated on 04/12/2013
Currently if someone dies they have an inheritance tax allowance, where everything under the nil rate band is not taxed.Under rules introduced by Alistair Darling you are able to transfer your allowance if not used up to your legally married spouse or civil partner. This means that when your spouse dies your inheritance tax allowance is added to theirs.When you give your allowance to your spouse their allowance increases. However, if you have used some of your allowance then only the balance remaining will be transferred.
