A residence nil rate band (RNRB) is, from 6 April 2017, available as an enhancement to the existing nil rate band to reduce the inheritance tax payable on death of a 'closely inherited main residence'1. The relief is given only against the chargeable transfer made on death and not against lifetime transfers which are chargeable on death (although see below as regards property subject to a reservation of benefit). It takes priority over the nil rate band2. However since the nil rate band and transferred nil rate band are applied to chargeable gifts in the order in which they are made, these will be set primarily against lifetime gifts made in the seven years prior to the death, and the balance then applied to the estate on death.
HMRC has published guidance how to apply the additional threshold on the operation of the RNRB.
For details on the operation of the relief see I4.163.
Alongside this enhancement there is a relief (referred to as 'downsizing relief') available where a person has downsized
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