Inheritance Tax: main residence nil-rate band and the existing nil-rate band
This tax information and impact note affects individuals with direct descendants and personal representatives of deceased persons, with total assets above the Inheritance Tax threshold.
Documents
Details
皇冠体育app draft Finance Bill 2016 clause and Explanatory notes were published on 9 December 2015.
This measure introduces an additional nil-rate band when a residence is passed on death to a direct descendant. This will be:
- 拢100,000 in 2017 to 2018
- 拢125,000 in 2018 to 2019
- 拢150,000 in 2019 to 2020
- 拢175,000 in 2020 to 2021
It will then increase in line with Consumer Price Index from 2021 to 2022 onwards. Any unused nil-rate band will be transferred to a surviving spouse or civil partner. It will also be available when a person downsizes or ceases to own a home on or after 8 July 2015 and assets of an equivalent value, up to the value of the additional nil-rate band, are passed on death to direct descendants.
Further details of these proposals are in a technical note on the Inheritance Tax main residence nil-rate band and downsizing proposals.
Updates to this page
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Details in the 鈥楳ore information鈥� section of the 鈥業nheritance Tax: main residence nil-rate band and the existing nil-rate band鈥� guidance have been amended.
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New hyperlink to 'Residence nil-rate band Guide' added to the more information section.
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Draft clause 44 and explanatory note 44 added to the page.
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First published.