Comparison · Inheritance Tax · 2026/27
Residence Nil Rate Band vs Standard Nil Rate Band UK 2026/27
Every estate gets a standard £325,000 Nil Rate Band. Many estates can also claim an extra £175,000 Residence Nil Rate Band — but only if a home passes to direct descendants. Here is how the two allowances differ and interact for 2026/27.
TL;DR - 30-Second Summary
- - Standard NRB: £325,000, applies to any estate passing to anyone, frozen until April 2030
- - RNRB: extra £175,000, only when a home passes to direct descendants
- - Taper: RNRB reduces by £1 for every £2 the estate exceeds £2,000,000
Side by Side: RNRB vs Standard NRB
| Feature | Standard NRB | Residence NRB |
|---|---|---|
| 2026/27 amount | £325,000 | £175,000 |
| Applies to | Any assets, any beneficiary | Only a home passing to direct descendants |
| Transferable to spouse | Yes, if unused | Yes, if unused |
| Tapers for large estates | No | Yes, above £2,000,000 estate value |
| Combined couple maximum | Up to £1,000,000 (2 x £325,000 + 2 x £175,000), before taper | |
Frequently Asked Questions
What is the standard Nil Rate Band?
The Nil Rate Band (NRB) is £325,000 for 2026/27 — the amount of any estate that can pass to anyone, in any form, free of Inheritance Tax. It has been frozen at this level since 2009 and is frozen until at least April 2030.
What is the Residence Nil Rate Band?
The Residence Nil Rate Band (RNRB) is an additional £175,000 allowance for 2026/27 that applies only when a main residence is left to direct descendants (children, grandchildren, and their spouses/civil partners, including step and adopted children). It sits on top of the standard £325,000 NRB.
Can I use the RNRB if I leave my home to a sibling or friend?
No. The RNRB only applies when the home passes to direct descendants. Leaving your home to a sibling, niece/nephew, friend, or into most trusts for someone other than a direct descendant does not qualify for the additional £175,000 band.
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What happens to the RNRB for large estates?
The RNRB tapers away by £1 for every £2 that the total estate value exceeds £2,000,000, and is fully withdrawn once the estate reaches roughly £2,350,000 (with a full £175,000 RNRB and a widowed spouse's transferred RNRB). Large estates should model this taper carefully.
Can both allowances be transferred between spouses?
Yes. Both the NRB and RNRB can be transferred to a surviving spouse or civil partner if unused on the first death, meaning a couple can potentially shelter up to £1,000,000 combined (2 x £325,000 NRB + 2 x £175,000 RNRB) before Inheritance Tax applies, subject to the taper on large estates.
Do I need to own the home outright to claim the RNRB?
You need to have owned an interest in the home at some point and it must have been your residence at some point before it passes to descendants — downsizing or selling a home can still qualify under the "downsizing addition" rules, which are more complex and worth discussing with a probate specialist.
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Disclaimer: This is educational information, not tax advice. Inheritance Tax planning involving the RNRB, trusts and the downsizing addition can be complex — see gov.uk/guidance/inheritance-tax-residence-nil-rate-band and consult a qualified estate planner for your circumstances.
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