The old rules stated that properties valued at £325,000 or less were exempt from inheritance tax. Anything above this figure was taxed at 40 per cent.
From April 6. 2017, individuals will be able to claim an additional £100,000 residence nil rate band to offset the sale of a family home after a death.
In 2020 this is set to rise to £175,000 and means that an individual will be able to give away £500,000 tax-free in total.
Allowances are transferable between partners, meaning that a couple will be able to pass on up to £1 million
In order to be eligible for the new allowance, an individual must: