The new residential nil rate band came in to force in April this year. What does this mean?
It is in addition to an individual's own nil rate band of £325,000, and conditional on the main residence being passed down to direct descendants (e.g. children, grandchildren).
By 2020/21 families could escape IHT on up to £1M of their wealth.. Each parent will have a nil-rate band of £325,000 plus a RNRB of up to £175,000.
It will be phased in over 4 years and the full £175,000 allowance will not be available until April 2020. The RNRB will start at £100,000 and will increase by £25,000 each tax year until 2020.
If you want to know how this may affect you and any previous planning in your Wills then please get in touch and we will me more than happy to advise.