018 Make sure your estate qualifies for the Residence Nil Rate Band, with Kurt Lee
The new residence nil rate band (RNRB) came into effect on the 6th April 2017. It’s a new inheritance tax relief being phased in gradually over a number of years. In tax year 2017-18 it was worth £100,000 per person, and it’s increasing by £25,000 increments until we get to tax year 2020-21 when the relief will be worth £175,000 per person.
When you add that to the £325,000 ordinary nil rate band available to everyone, you get half a million pounds inheritance tax relief per person.
But there are many rules attached when it comes to the value of your estate, who is eligible and what happens if you downsize or go into care.
Specialist estate and tax planning solicitor, Kurt Lee of Lester Aldridge solicitors, explains the rules and what you need to do to ensure your estate qualifies to claim the RNRB.