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Anthony Nixon explores complexities of the residence nil rate band and how you can maximise the relief

Attitudes to inheritance tax (IHT) vary hugely. The strong emotions it inspires must, at least partly, be linked to deaths of parents and the value of homes. George Osborne’s 2015 announcement of a new ‘£1m IHT-free allowance’ specifically addressed this with the creation of the residence nil rate band (RNRB). 

Unfortunately, the narrow targeting of RNRB on parents passing on the family home makes it an extraordinarily complex relief at a time when we are also told that tax is supposed to be fair and simple.