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What is the residence nil rate band (RNRB)?

The RNRB is an addition to the basic nil rate band (NRB), which further reduces the inheritance tax payable on death. It differs from the basic NRB in that it is applied only to the death estate and not to lifetime gifts within seven years of death.

Like the NRB, it is also available to an individual regardless of domicile or long-term residence status. However, where an individual who is not long-term UK resident is concerned, any residence for these purposes must be in the UK for the RNRB to be available ― that is it must be chargeable to UK inheritance tax. For a long-term UK resident the residence can be anywhere in the world as their worldwide estate is already chargeable to inheritance tax.

The enhanced allowance is dependent on:

1. •

   the value of residential property in the estate, and

2. •

   the inheritance of lineal descendants

The RNRB was introduced in Finance Act 2015, with further refinements added