IHT changes: Passing on the family home isn't as easy as it sounds

Simon Ruthers looks at the main residence nil rate band

clock • 4 min read

Simon Ruthers explains how the new £1m main residence nil rate band works and why its impact on IHT planning may be more limited than it appears

Inheritance tax (IHT) is now at record levels, with HM Revenue & Customs expecting to collect £4.6bn in the 12 months to March 2016 - an increase of 20% on the previous year. For many, the new main residence nil rate band (RNRB), which is intended to enable people to pass on a family home of up to £1m in value free of IHT, can't come soon enough. Representing a crucial element of the Conservative Party's election promise on taxation, the proposed RNRB has already attracted an amount of criticism, particularly due to the level of complexity.  Even before it is introduced, many are s...

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

Octopus' Kristy Barr: Estate planning innovation crucial as govt shifts goalposts

Octopus' Kristy Barr: Estate planning innovation crucial as govt shifts goalposts

Last two Budgets have ‘caused a lot of uncertainty, a lot of disruption’

Jenna Brown
clock 20 January 2026 • 8 min read
Will IHT reforms trigger a pension scam epidemic?

Will IHT reforms trigger a pension scam epidemic?

'People feel that they can trust what they see on social media'

Caitlin Southall
clock 20 January 2026 • 4 min read
Property wealth counts for approaching half of IHT-paying estates in London

Property wealth counts for approaching half of IHT-paying estates in London

Average property value exceeds £862,000

Isabel Baxter
clock 14 January 2026 • 2 min read