Glossary - Residence nil rate band
Description
The residence nil rate band is an additional inheritance tax allowance that applies when a qualifying residential property is passed to direct descendants. It sits on top of the standard nil rate band, increasing the value of an estate that can be transferred free of inheritance tax, subject to tapering for larger estates.
Alternate Names
- Taper threshold
- Main residence
- Transferable allowance
- Direct descendants
- Inheritance tax (IHT)
- Nil rate band
