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...

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