On death, Inheritance Tax (IHT) is charged on estates where the net taxable value (after deducting various reliefs and exemptions) is more than the available nil-rate band. The available nil rate band currently is £325,000 per taxpayer. The available nil-rate band is the nil band at death less any chargeable transfers (namely gifts) made by the deceased in the 7 years before death.
On death, IHT is currently charged at a single rate of 40% on the net taxable value of the estate that exceeds the available nil-rate band.
The purpose of this briefing is to provide an overview of the availability and operation of the ‘residence nil rate band’ (RNRB), which was introduced from 6 April 2017. Click here to view the guide in full.