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

IHT on pensions: Getting the practicalities right

IHT on pensions: Getting the practicalities right

Practical refinements needed to make reforms work effectively

Emily Deane
clock 15 October 2026 • 4 min read
Why a higher CGT rate may not mean most business owners pay it

Why a higher CGT rate may not mean most business owners pay it

While it is entirely possible that CGT rates could rise sharply in the Budget, Chris XX remains sceptical that the majority of genuine business owners will ultimately pay tax at the full headline rate...

Chris Riley
clock 14 October 2026 • 4 min read
Budget Media Watch: Chancellor will not hike CGT to match income tax

Budget Media Watch: Chancellor will not hike CGT to match income tax

Smaller rise possible

Alex Sebastian
clock 14 October 2026 • 2 min read