Inheritance tax to be affected by new law arriving in 2021– will grandparents pay more? | Personal Finance | Finance
Managing IHT costs can be complicated at the best of times but Kay Ingram, a director of public policy at financial planners LEBC, highlighted oncoming divorce law changes could make tax planning even more difficult.
As she explained: “The introduction of ‘quickie’ divorce laws from next year means that it is even more important for divorcees and their lawyers to consider and agree the financial split prior to obtaining a decree absolute.
“Under the new law couples can be divorced within six months and once they are no longer legally married lose many of the tax breaks and benefits which are reserved exclusively for married and civil partner couples.
“This can include loss of dependents pension from workplace schemes and the State pension, loss of the main residence tax relief on selling or transferring the family home, ineligibility for State Bereavement benefits and a loss of the exemptions from capital gains and inheritance tax.
READ MORE: Martin Lewis explains how ‘tricky’ PPI tax rules