The following Private Client guidance note provides comprehensive and up to date legal information covering:
This Practice Note aims to guide practitioners to Q&As and worked examples of the principles under which the inheritance tax (IHT) residence nil rate band (RNRB) (also known as the additional threshold) and the transferable RNRB (brought forward allowance) are calculated and applied on the death of an individual on or after 6 April 2017. For general information on the RNRB, see Practice Note: IHT—residence nil rate band.
It should be noted that Q&As are not currently maintained and state the law as at the date indicated.
For information on the basic nil rate band (NRB) and the transferable NRB and in particular how these reliefs are claimed and relevant deadlines, see Practice Notes: IHT—nil rate band (NRB) and transferable NRB and IHT—calculation of nil rate band and transferable NRB.
The RNRB is available to be set against the deceased’s whole estate up to the value of a residential property interest passing to qualifying beneficiaries. It is not necessary for the residence itself to be specifically bequeathed to those beneficiaries.
The legislation defines a qualifying residential interest (QRI). The main condition is that the deceased must have had an interest in a property which was occupied as that person's residence when they owned it and which would have been part of their estate on their death. Where the
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