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

Rachel Vahey: Five (other) possible Budget announcements

Rachel Vahey: Five (other) possible Budget announcements

Budget speech set for 26 November

Rachel Vahey
clock 10 September 2025 • 3 min read
Integrating lifetime mortgage advice into IHT planning

Integrating lifetime mortgage advice into IHT planning

'Now is the time to get ahead of the curve'

Dave Harris
clock 08 September 2025 • 4 min read
Court of Appeal ruling brings 'blockbuster' Russian divorce case to UK

Court of Appeal ruling brings 'blockbuster' Russian divorce case to UK

Multi-billion pound divorce claim could be heard in UK courts

Jenna Brown
clock 04 September 2025 • 3 min read