Residence Nil Rate Band

31 Jul 2019 | Suzanna Baker
house in regents park london

Table of Contents

What is the Residence Nil Rate Band?

The Residence Nil Rate Band is an additional nil rate band. It can be claimed upon a person’s death by their personal representatives to reduce the amount of inheritance tax payable on an estate. It can be applied together with the ordinary nil rate band, which is currently £325,000 per person.

How much is the Residence Nil Rate Band?

At present, the Residence Nil Rate Band is £175,000. It increased from £150,000 in April 2020.

Can my estate claim the Residence Nil Rate Band?

The main requirements to be able to claim the Residence Nil Rate Band are as follows:

  • You must own or have a ‘qualifying interest’ in a residential property. It is not necessary for the property to be your main residence or to be in the UK.
  • You must have lived in the property at some point during your lifetime.
  • The property must be ‘closely inherited’ on your death. ‘Closely inherited’ means by a lineal descendant (including stepchildren and foster children), a spouse or civil partner of a lineal descendant, or a surviving spouse or civil partner of a lineal descendant who has not re-married.

Does the value of my estate affect claiming the Residence Nil Rate Band?

Yes, if the value of your estate exceeds £2 million on your death, the RNRB allowance will be tapered by £1 for every £2 of your estate that exceeds this threshold. Based on the current allowance of £175,000, if your estate exceeds £2.3 million you will be unable to claim the RNRB. However, depending on the total value of your estate, it may be possible to fall within this threshold by including specific provisions within your Will.

What if I have sold my house during my lifetime?

If you have ‘disposed’ of a residence on or after 8 July 2015, either completely (e.g. selling your house and moving into a care home) or by moving to a less valuable property, a downsizing allowance is available.

Can the Residence Nil Rate Band be transferred between spouses?

Yes, like the ordinary nil rate band is it possible to transfer any unused RNRB between spouses The second spouse must have died on or after 6 April 2017.

Do I need to draft my Will in a certain way to claim the Residence Nil Rate Band?

To claim the RNRB your estate must pass in quite a specific way. The RNRB requirements can be complex and so to ensure that these are satisfied we recommend you seek legal advice on your Will.

Share this article

Contact

Contact us today

For a free initial conversation call 020 7485 8811

Email us Send us an email and we’ll get back to you






    Related InsightsVIEW ALL

    1. osbornes hampstead office
      25.4.2024

      What is a Mirror Will?

      Mirror wills are mirror images of each other and practically the same in every way. They suit couples, married or...

      Read more
    2. night sky
      22.4.2024

      5 Things You Should Never Put in a Will

      When it comes to writing a will, you want to make sure that your wishes are known and that the...

      Read more
    3. Forged will pic
      22.3.2024

      Forged Wills

      If the contents of a will comes as a surprise, then one of the things to consider is whether the...

      Read more
    4. man looking at a lake
      31.8.2023

      Can Someone With Dementia Make A Will or...

      It’s a sad reality in an ageing population that more people than ever suffer from dementia in the UK....

      Read more
    5. Businessman and Male lawyer or judge consult having team meeting with client, Law and Legal services concept
      19.7.2022

      Beware of appointing your children as executors

      Where tensions exist between family members, making your children the executors of your will can cause huge problems with probate,...

      Read more
    6. older man on a bench
      1.1.2022

      How to Divide Assets in a Blended Family

      In this article we look a scenario for someone who is making a will where they are married with children...

      Read more
    7. lady singing document
      25.9.2020

      Making a Will by video link

      The Government has recently announced plans to allow for the witnessing of Wills and Codicils by video conferencing. This is...

      Read more
    8. guide dog
      10.6.2020

      Leaving money to charity in your will

      Why leave money to charity in your Will? Leaving money to charity in your will is a significant source of...

      Read more
    9. garden
      26.3.2020

      Property up to £1m can be inheritance tax...

      Changes to inheritance tax allowances mean married couples can leave property worth £1 million tax-free from 6 April. Modest houses in parts...

      Read more
    10. hampstead office
      19.12.2019

      Hampstead solicitor becomes notary public

      Hampstead solicitor Elspeth Neilson of Osbornes Law has qualified as a notary public (a notary), meaning she can now certify...

      Read more
    11. property in spain
      22.10.2019

      Property abroad? Beware of forced heirship rules

      Whether it’s a holiday home, an investment property or a place you want to retire to, if you own...

      Read more
    12. unwanted call
      9.8.2019

      What is fraudulent calumny?

      Rise in ‘fraudulent calumny’ Maggie Leiper, a private client solicitor at London law firm Osbornes Law, says she’s seen...

      Read more
    13. international flags on wall
      3.7.2019

      Assets abroad? Why you may need more than...

      As more of us become internationally mobile, it’s increasingly common to own assets abroad. Yet lawyers say many people...

      Read more
    14. a couple doing DIY
      31.5.2019

      The Problem with DIY Wills

      DIY Wills’ blamed for rise in probate disputes The Law Gazette has recently reported that ‘DIY Wills’ are being blamed...

      Read more
    15. 25.3.2019

      Cross Border Issues – Wills and Succession

      An increasing number of individuals have connections with more than one jurisdiction. Conflicting rules can significantly affect their estate planning...

      Read more
    16. person receiving bad news
      25.3.2019

      What happens when someone dies without a will?

      Dying without a will When someone dies without a Will, the Intestacy Rules apply. These rules, which are set out...

      Read more
    17. two ladies talking
      13.11.2017

      Mutual Wills

      The High Court’s decision in the recent case of Legg and Burton v Burton [2017] has highlighted the issues surrounding...

      Read more

    VIEW ALL