Mark McLaughlin looks at the inheritance tax residence nil-rate band, and at some possible ways of avoiding a clawback.
The inheritance tax (IHT) residence nil-rate band (RNRB) is an extra nil-rate band (i.e., in addition to the standard nil-rate band of £325,000 for 2026/27), which could potentially shelter all or part of a deceased individual’s estate from IHT at 40% in respect of their residential property’s value, if certain conditions are satisfied.
The RNRB maximum per individual is £175,000 (for 2026/27). However, for married couples (or civil partners), unused RNRB can generally be transferred from a deceased spouse, so it
