Residence Nil Rate Band
RESIDENCE NIL RATE BAND - NEW FROM 6 APRIL 2017
IHT ADDITIONAL THRESHOLD (RNRB)
The new Residence Nil Rate Band (RNRB) rules are more complicated than they initially appear, and may apply in more situations that you think.
It is important for you to carefully check the rules as it could save you IHT if you can use the additional threshold.
WHEN THE THRESHOLD APPLIES
The estate will be entitled to the additional threshold if:
the person dies on or after 6 April 2017
the person owns a home, or a share of one, so that it's included in their estate
their direct descendants such as children or grandchildren inherit the home or a share of it
For estates over £2m the threshold is gradually tapered away.
An estate may also be entitled when the person has downsized to a less valuable home, or sold, or given away their home after 7 July 2015.
ADDITIONAL THRESHOLD AMOUNT
The maximum amount will increase yearly.
For deaths in the following tax years it will be: