Foresight AITS Scenarios: Residential Nil Rate Band Hugi Clarke, Director at Foresight Group By Hugi Clarke, Sales Director, Foresight
The government has introduced legislation that will increase the IHT threshold, in an effort to help individuals pass down their main residence to their beneficiaries without incurring a tax liability. 
This new measure, the Residential Nil Rate Band (RNRB), will be introduced gradually between 2017/18 and 2020/21, where ultimately an additional £175,000 will be added to the existing exemption of £325,000. This will allow couples to pass on up to £1 million of their estate to their beneficiaries IHT free.  
Whilst clearly beneficial, the staggered implementation of the measure could become a problem in the case of death before the tax year 2020/21. For example, let’s consider a fictional couple, Mr and Mrs Jackson, who risk incurring an unexpected IHT liability on their £1 million estate.  
With these issues in mind, the Accelerated Inheritance Tax Solution, Foresight’s latest retail investment product, could be an ideal solution for the Jacksons. We’ve designed AITS to protect clients from suffering an unexpected IHT liability by combining an investment that benefits from Business Property Relief - which is exempt from IHT after two years - with an insurance policy that covers the potential IHT liability in the first 24 months. By bridging the gap between today, when no RNRB is available, and the introduction of the new allowance, the AITS potentially offers the Jackson’s a level of protection not possible with many other IHT products. 
This communication has been issued and approved as a financial promotion for the purpose of Section 21 of the Financial Services and Markets Act 2000 by Foresight Group LLP, which is authorised and regulated by the Financial Conduct Authority (FRN: 198020). Your money will be invested in unlisted companies which places your capital is at risk and you may lose all the money you invest. Prospective investors should seek independent professional advice before deciding to invest. Tax treatment depends on the individual circumstances of the investor and may be subject to change in the future.