Five things clients need to know about new residence nil-rate band

Allowance initially £100,000

clock • 3 min read

The new residence nil-rate band comes into force this week and yet, according to research from Old Mutual Wealth, the great majority of people know nothing about it.

The research, which was conducted last month by Atomik Research on behalf of Old Mutual Wealth, canvassed the opinions of 1,009 respondents living in the UK, aged 45 and above and with at least £50,000 in wealth and found almost three-quarters (70%) knew nothing about the residence nil-rate band From 6 April, the measure adds an additional £100,000 inheritance tax (IHT) allowance on to the current nil-rate band of £325,000. The extra allowance is due to rise to £175,000 by 2020, which would mean by that point a couple could pass a £1m home to beneficiaries free of IHT. "The basic prin...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

Watch on-demand: IHT on pensions from April 2027 – what financial planners need to know

Watch on-demand: IHT on pensions from April 2027 – what financial planners need to know

Catch up on Tuesday's webinar on pensions being brought into IHT's scope

Professional Adviser
clock 26 September 2025 • 1 min read
IHT advice demand to surge as advisers rethink decumulation strategies

IHT advice demand to surge as advisers rethink decumulation strategies

PA talks to BNY IM head of retirement Richard Parkin

Jenna Brown
clock 24 September 2025 • 5 min read
Budget 2025 predictions: Balancing economic reality and political ideology

Budget 2025 predictions: Balancing economic reality and political ideology

26 November speech will likely affect estate planning, investments and property

Stephen Kenny
clock 18 September 2025 • 4 min read