Jonathan Shankland and Claudia Whibley (RadcliffesLeBrasseur) use practical examples to illustrate the workings of the new residence nil rate band which came into force last month.
6 April 2017 welcomed the residence nil rate band which aims to achieve the £1m inheritance tax (IHT) allowance (the amount of the estate which is taxed at 0%) for married couples. The first provisions were set out in the F(No. 2)A 2015 which inserted ss S8D–S8M into IHTA 1984. Finance Act 2016 made further provisions in relation to downsizing. The total IHT allowance of £1m is achieved through a combination of:
the nil rate band (NRB) fixed at £325 000 until April 2021;
the transferable NRB between spouses/civil partners; and
the residence nil rate band (RNRB).
The basics
The RNRB is available when a person who dies on or after...
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Jonathan Shankland and Claudia Whibley (RadcliffesLeBrasseur) use practical examples to illustrate the workings of the new residence nil rate band which came into force last month.
6 April 2017 welcomed the residence nil rate band which aims to achieve the £1m inheritance tax (IHT) allowance (the amount of the estate which is taxed at 0%) for married couples. The first provisions were set out in the F(No. 2)A 2015 which inserted ss S8D–S8M into IHTA 1984. Finance Act 2016 made further provisions in relation to downsizing. The total IHT allowance of £1m is achieved through a combination of:
the nil rate band (NRB) fixed at £325 000 until April 2021;
the transferable NRB between spouses/civil partners; and
the residence nil rate band (RNRB).
The basics
The RNRB is available when a person who dies on or after...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
