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

Incoming IHT on pensions drives gifting surge

Incoming IHT on pensions drives gifting surge

Affluent individuals change behaviour

Jen Frost
clock 30 June 2026 • 2 min read
Pensions and IHT: Why clients can't afford to wait

Pensions and IHT: Why clients can't afford to wait

April 2027 sees unused pension funds come under the scope of IHT

Reena Bhudia
clock 30 June 2026 • 5 min read
'A lot of fear out there': SJP's Claire Trott on IHT on pensions

'A lot of fear out there': SJP's Claire Trott on IHT on pensions

‘Any change drives advice’, head of advice says

Sophia Panayi
clock 29 June 2026 • 3 min read