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...

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

Why the Scottish Budget means it's time to act to save your pension

Why the Scottish Budget means it's time to act to save your pension

'These changes may mark something of an inflection point'

Drew Nutsford
clock 02 April 2026 • 4 min read
Expect 'painful teething challenges' on IHT overpayments, advisers warn

Expect 'painful teething challenges' on IHT overpayments, advisers warn

Fears HMRC delays could lead to months-long waits

Laura Purkess
clock 02 April 2026 • 2 min read
'The first of many lasts' – Marking a different tax year end

'The first of many lasts' – Marking a different tax year end

Advisers and clients having to digest changes under Labour

Isabel Baxter
clock 01 April 2026 • 5 min read