Residence Nil Rate Band

Using the Residence Nil Rate Band can significantly reduce the amount of inheritance tax payable on your estate.

For a free initial meeting to discuss how we can help you contact us online or call us on T: 023 9248 4356T: 023 9248 4356


Subscribe Now

How does the Residence Nil Rate Band (RNRB) work?

If someone dies on or after 6 April 2017 and their estate is above the basic inheritance tax threshold of £325,000, and includes a property, the estate may be entitled to an additional threshold before any inheritance tax becomes due.

The property has to be left to children or grandchildren etc to qualify and is tapered away for estates with a value in excess of £2 million.  Downsizing allowances are available where the deceased had recently moved into a smaller home or been taken into care.

The threshold is to increase yearly as follows:

2017 to 2018 £100,000
2018 to 2019 £125,000
2019 to 2020 £150,000
2020 to 2021 £175,000

Example:

Individual A dies between April 6 2018 and April 5 2019.  His estate is worth £500,000, included within this is a property valued at £350,000 (enabling the nil rate residence relief to be utilised).

   £        £
 What relief is available to Partner A?    
 Estate value    500,000
 Basic inheritance tax threshold  325,000  
 2017 to 2018 RNRB  125,000  
 Total tax free threshold   (450,000)
 Remainder of taxable estate      50,000       @ 40% = £20,000 inheritance tax liability

 

For a married couple, both reliefs are passed on to the surviving spouse upon death. There is no inheritance tax on an estate passed between married couples and civil partners.

For more information visit our inheritance tax page.

If you are interested in becoming a client of Morris Crocker, contact us on 023 9248 4356 or alternatively you can complete the request a quote form opposite.

Request a Quote

Name:
Company:
Email Address:
Contact Number:
Service interested in:

Nature of your business:
Enquiry:

Click here if you would like to opt in to receive updates and event invitations from Morris Crocker.

Please confirm you are human:
 


REF: MC/RQ/1.4

 

What our clients say...

“We have been using Morris Crocker for accountancy services now for nearly 20 years.   They prepare our accounts, VAT returns and provide general partnership advice.    In all that time they have never let us down.    Their advice has always been prompt, reliable and above all, delivered in simple understandable language.   We enjoy our relationship with a named partner who is always familiar with all aspects of our practice.  We would whole heartedly recommend them.”

Latest news...

16/10/2019

Tax changes for landlords presentation

Residential property owners had the opportunity to ask about the tax changes which will affect them from next April. Speaking at an event for private landlords based in the Portsmouth area, Morris Crocker’s

READ MORE

Newsletter Sign Up

Sign up to keep in touch to receive our latest news and industry updates.

Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.



REF: MC/NL/1.1