This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Passing on the family home and ‘frozen’ nil-rate bands

Shared from Tax Insider: Passing on the family home and ‘frozen’ nil-rate bands
By Sarah Bradford, May 2021

Sarah Bradford considers the impact that the Chancellor’s announcement that the IHT nil-rate band and residence nil-rate are to be frozen until April 2026 may have on those looking to pass on their family home. 

Inheritance tax (IHT) is only payable where the value of the chargeable estate exceeds the available nil-rate bands. 

There are potentially two types of IHT nil-rate bands available – the ‘standard’ nil-rate band and the residence nil-rate band (RNRB). 

The nil-rate band 

The standard nil-rate band has been frozen at its current level of £325,000 since 2008/09. It was due for a review in 2021; however, along with a number of other allowances and thresholds, it is to remain at this level until April

This is one of our 2098 Premium articles

To see this article in full and unlock access to our complete library of 2098 articles click 'subscribe & unlock' below:
SUBSCRIBE & UNLOCK

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you
Thank you for signing up to hear from us!