IHT: changes to Residence Nil Rate Band


Minor technical amendments are to be made to the residence nil rate band (RNRB) for IHT purposes. The amendments seek to clarify the working of the downsizing rules and provide certainty over when a person is treated as ‘inheriting’ property. Finance Bill 2018/19 will include provisions to ensure that the value of any part of a residence that is inherited by an exempt beneficiary is taken into account in determining a person’s lost relievable amount. New provisions will also ensure that where a residence forms part of a person’s estate immediately before their death as a gift with reservation of benefit (in accordance with FA 1986, s 102(3)), it will only be treated as being inherited by a direct descendant if the property became immediately comprised in the direct descendant’s estate because of the original gift. These changes will have effect for deaths applying on or after 29 October 2018.

Added By: Sue Taylor on 01st Nov 2018 - 13:35
Number of Views: 383
Got A Question?

If our news items leave you with a question you need answering, let us know using one of the following:

  1. Call us on 01252 522221
  2. Email us
  3. Use our enquiry form
  4. Use the comments form below

We're happy to help.