Who can claim the IHT residence nil rate band

tiemadmin • 7 August 2025

With the Residence Nil Rate Band (RNRB), families can pass on up to £1 million without IHT

The RNRB is an additional £175,000 Inheritance Tax (IHT) allowance that applies when a person’s main residence is passed to a direct descendant, such as a child or grandchild, after their death. The allowance is available to married couples and civil partners, and it can significantly reduce the IHT liability on family homes.

The RNRB is separate from and in addition to the standard IHT nil-rate band of £325,000. When combined with the standard threshold, a married couple or civil partners can potentially pass on up to £1 million tax-free to their direct descendants. This figure is based on two individuals each having a £325,000 nil-rate band and a £175,000 RNRB.

Importantly, any unused portion of the RNRB from the first spouse or civil partner to die can be transferred to the surviving partner, provided a claim is made to HMRC when the second partner dies. This transfer is not automatic and must be claimed. This is usually done by the executor of the estate during administration.

The RNRB is subject to tapering for larger estates. For estates valued over £2 million, the RNRB is reduced by £1 for every £2 over the threshold. As a result, estates significantly exceeding £2 million may lose the RNRB entirely, even if the home is passed to direct descendants.

< Older Post

Newer Post >

Budgeting and forecasting in a period of lower confidence

by tiemadmin • 9 February 2026
Many business owners are entering the new year with a sense of caution. Confidence across the UK business community has softened, driven by continued cost pressures, uncertainty over tax policy and The post Budgeting and forecasting in a period of lower confidence appeared first on Feldon Accountancy.

Business rates support and cash flow for hospitality businesses

by tiemadmin • 9 February 2026
Hospitality businesses continue to operate in a challenging environment. Rising wage costs, energy prices and supply chain pressures have all placed strain on margins. Against this backdrop, recent The post Business rates support and cash flow for hospitality businesses appeared first on Feldon Accountancy.

Eligibility for Business Asset Disposal Relief

by tiemadmin • 5 February 2026
Business Asset Disposal Relief (BADR) can significantly reduce the Capital Gains Tax due when selling a business or shares, but with higher rates coming from April 2026, timing and eligibility matter The post Eligibility for Business Asset Disposal Relief appeared first on Feldon Accountancy.