Where this fits
Whether your estate qualifies, and whether the band tapers, decides how much of your home it can protect.
Sunny Bharj
Independent Financial Adviser
Tony Springer
Independent Financial Adviser
It is an extra inheritance tax allowance of up to £175,000, available where a residence you lived in passes to direct descendants. It sits on top of the ordinary £325,000 nil rate band and tapers away above a £2m estate.
Like the ordinary nil rate band, an unused residence band transfers to a surviving spouse or civil partner. It transfers as a percentage of the band unused on the first death, so it keeps pace with any future increase in the band.
Where the first estate was large enough for the band to taper, the percentage available to transfer is reduced as well.
Where the first estate was large enough for the band to taper, the percentage available to transfer is reduced as well.
There are downsizing provisions for anyone who sold or moved to a less valuable home after 8 July 2015, so the band is not automatically lost. The rules are detailed, so check them against your own circumstances.
It depends on the type of trust. Some trusts for children qualify, others break the entitlement entirely.
The residence band is not available, so the ordinary £325,000 is the allowance, transferable between spouses in the usual way.
Broadly yes, or to have done so and be relying on the downsizing provisions. There is no requirement to have lived there at the end.
Whether your estate qualifies, and whether the band tapers, decides how much of your home it can protect.
Independent Financial Adviser
Independent Financial Adviser
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