Residence Nil-Rate Band (RNRB)
An extra £175,000 inheritance tax allowance when leaving your home to direct descendants. Can double to £350,000 for couples.
The Residence Nil-Rate Band (RNRB) is an additional inheritance tax allowance of £175,000 available when you leave your home to direct descendants.
Who Qualifies
- You must own a property that was your residence at some point
- It must be left to direct descendants (children, grandchildren, great-grandchildren)
- Includes step-children and adopted children
- Includes children of deceased children
How It Works
- Standard nil-rate band: £325,000
- Residence nil-rate band: £175,000
- Combined for individual: £500,000
- Both transferable to spouse: Combined £1 million for couples
Tapering for Large Estates
The RNRB reduces by £1 for every £2 the estate exceeds £2 million. It disappears entirely at £2.35 million (for an individual).
Downsizing Relief
If you downsize or sell your home after 8 July 2015, you may still get the RNRB if you leave other assets of equivalent value to direct descendants.
Common questions
What if I leave my home to my spouse?
You don't use the RNRB (spouse exemption applies anyway). But your unused RNRB transfers to your spouse for when they die.
Can I get the RNRB if I leave my home to charity?
No. It must go to direct descendants. Charity gifts qualify for charity exemption instead.
What if my home is worth less than £175,000?
You get the RNRB up to the home's value. The unused portion isn't transferable (unlike the main nil-rate band transfer).
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