Lilly Whale: Residence nil-rate band 'nuances' explained

Direct descendants

clock • 5 min read

Lilly Whale explores the intricacies and nuances of the residence nil-rate band in her latest IHT-focused article for Professional Adviser

The residence nil rate band (RNRB) was introduced in April 2017 as an additional tax-free threshold to reduce the size of an estate and therefore the inheritance tax payable on death. Although many estates had increased greatly in preceding years by virtue of a significant rise in property prices, the regular nil-rate band has not increased comparatively; the RNRB sought to address that.   The RNRB is currently £175,000 (it was originally set at £100,000) and is expected to remain at this figure until April 2026. The nil rate band is still £325,000. Autumn Budget 2021: Pensions and...

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