Glossary · UK
What is Residence Nil-Rate Band (RNRB)?
Extra £175,000 IHT allowance when a home passes to children or grandchildren.
Full Definition
The Residence Nil-Rate Band (RNRB) is an additional £175,000 (2025/26) IHT-free threshold available when a qualifying residential property is left to direct descendants — children (including step/adopted/fostered), grandchildren. Introduced 2017, phased to full £175,000 by 2020. Tapered by £1 for every £2 of estate above £2 million — so fully lost above £2,350,000. Transferable to surviving spouse if unused. Available even if home was «downsized» before death (downsizing addition rules).
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.