Inheritance Tax: The residence nil rate band explained (2022)

The nil rate band is the threshold above which Inheritance Tax is payable. It is currently £325,000 per person and will remain fixed at this amount until 2026.

In 2017 the residence nil rate band was introduced as an additional amount that could be passed on tax-free against the value of your family home. It applies to your main residence, not to any other properties you may own. It is currently £175,000. This can save you tens of thousands of pounds worth of tax, but the rules aren’t that simple.

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[TheRetirementCafe]

Do you have any questions about the residence nil rate band?

[chrishouse]

thanks for your time and vid, very informative.

[pravinshah]

Justin thank you for a very helpful video. I have a "will trust" set up with the will. On death this looks like a discretionary trust. Can I change this trust to non discretionary?
Will I get the extra £175k additional threshold?

[Tenzin]

If there’s no will, and a letters of administration is sought, can we still apply as a child of ge deceased

[richardbaxter]

Its so complex, im an accountant and there is still elements im unclear on that arent on HMRC website (anywhere obvious) - if you could help thatd be great.
1. My grandfather died before the property £175k existed residence NRB, will my nan have his £175k as well as her own?
2. If so, her NRB is total (175+325)x2 = £1m. But her house is worth £500k, will her total NRB be house value £500k or the total value of estate £900k.
Wondered if i could pay for an hour of advice at all

[kohtime]

Morning Jason, I wonder if you can clarify something for me…. If for example my mother passes her NRB to my father upon death is he then able to pass the entire £650k after his passing or does it revert to his individual NRB? This is something my family have been struggling to understand for some time and we would really appreciate your clarity on the matter. Thanks in advance

[jj]

My father bought the house in my mums name which is worth £425, 000 now. Where my dad passed away 4 years later. He also bought another property which is again probably worth £400k and put half into my mums name and half into my brothers. My father passed away a year later after purchasing this. Now is this considered gifts to my mother and brother. Where half of the 400k belongs to brother and we have £425k as our main residence where my mother lived, plus half of the £400k. With chattels and investments, will be around £20k. So about £645k in total of estates. My mother passed away recently, does my mum have any spousal allowances as technically her husband (my dad) put the property in my mothers name, and brothers, so is this classed as a "gift". Also in this instance does the NRB and RNRB apply? What will be the threshold and allowances in this circumstances?

[jasmineblack]

If a husband died & left his half of house worth £100, 000 & assets worth £50, 000 to his wife.When wife died later on & she has house worth £230, 000 & £170, 000 of assets & passed this to her sons.Would there be no IHT to pay ?& is there a form they have to complete for HMRC please to transfer nil band rate ?Thanks