It may feel as if people have been talking about the residence nil-rate band for some years but, in reality, it only started phasing in from 6 April. Here Andy Woollon looks at how it works and who will benefit.
The residence nil-rate band (R-NRB) is available on an individual's death on or after 6 April 2017 and takes precedence over the standard nil-rate band (S-NRB). It will, however, only be available where a ‘qualifying residential interest' in a property is ‘closely inherited'. Or, in simple terms, you leave the family home to your kids. The R-NRB is being phased-in as follows: Tax year R-NRB per person 2017/18 £100,000 2018/19 £125,000 2019/20 £150,000 2020/21 £175,000 2021 onwards Increases by CPI (as will the S-NRB)...
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