Richard Burgess: The residence nil-rate band - complex, misunderstood and valuable

'Death bed planning offers an opportunity'

clock • 4 min read

Richard Burgess explores the 'complex, misunderstood and valuable' residence nil-rate band

Ever-increasing house prices and rocketing inflation, mean inheritance tax is a growing problem for homeowners. The residence nil-rate band, an allowance introduced by the government in 2017, seeks to alleviate the burden for homeowners wanting to pass their home to their children. The allowance is available in addition to the nil-rate IHT band which permits individuals to pass up to £325,000 of their estate to their beneficiaries free of tax. The value of the nil-rate band has not changed since 2009 and is frozen until at least April 2026. As property prices rise, this means more est...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

'Christmas has come early for the government' – IHT receipts rise

'Christmas has come early for the government' – IHT receipts rise

Budget tax changes and rising take highlight advice value, experts say

Jen Frost
clock 20 December 2024 • 2 min read
No more IHT relief on pensions: How to maximise alternative tax-efficient vehicles

No more IHT relief on pensions: How to maximise alternative tax-efficient vehicles

In the light of the government’s latest Budget

Jordan Wheatley
clock 19 December 2024 • 5 min read
Pension death tax – fair game?

Pension death tax – fair game?

Government took steps to reset the purpose of a pension

Lee Halpin
clock 11 December 2024 • 4 min read