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...

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