Richard Burgess: The residence nil-rate band - complex, misunderstood and valuable

'Death bed planning offers an opportunity'

clock • 4 min read

Richard Burgess explores the 'complex, misunderstood and valuable' residence nil-rate band

Ever-increasing house prices and rocketing inflation, mean inheritance tax is a growing problem for homeowners. The residence nil-rate band, an allowance introduced by the government in 2017, seeks to alleviate the burden for homeowners wanting to pass their home to their children. The allowance is available in addition to the nil-rate IHT band which permits individuals to pass up to £325,000 of their estate to their beneficiaries free of tax. The value of the nil-rate band has not changed since 2009 and is frozen until at least April 2026. As property prices rise, this means more est...

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

Property wealth counts for approaching half of IHT-paying estates in London

Property wealth counts for approaching half of IHT-paying estates in London

Average property value exceeds £862,000

Isabel Baxter
clock 14 January 2026 • 2 min read
Scottish Budget: Mansion tax for £1m properties; Increased income tax thresholds

Scottish Budget: Mansion tax for £1m properties; Increased income tax thresholds

Finance Secretary Shona Robison delivers 2026/27 Budget speech

Jenna Brown
clock 13 January 2026 • 5 min read
UK tax changes for non-residents: The abolition of the dividend tax credit

UK tax changes for non-residents: The abolition of the dividend tax credit

'The key is correctly identifying each category and modelling the two methods side by side'

Tony Müdd
clock 06 January 2026 • 7 min read