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

Most millionaires would pay higher taxes to support young people – research

Most millionaires would pay higher taxes to support young people – research

79% willing to pay higher taxes

Sophia Panayi
clock 13 May 2026 • 3 min read
IHT thresholds would be £270,000 higher if they rose in line with inflation

IHT thresholds would be £270,000 higher if they rose in line with inflation

Growing interest in onshore bonds

Isabel Baxter
clock 13 May 2026 • 2 min read
HMRC releases 'crucial' technical note on IHT on pensions

HMRC releases 'crucial' technical note on IHT on pensions

Law firm warns of complexity and risk for families and executors

Jenna Brown
clock 11 May 2026 • 3 min read