News

2015 Summer Budget – Residence NRB

Posted on by tfp in Planning, Taxation

The 2015 summer budget announced that the Inheritance Tax Nil Rate Band (NRB) is to remain unchanged at £325,000 until end of 2020/21

It also introduced an additional nil-rate band when a residence is passed on death to a direct descendant (including grandchildren).

For HMRCs publication of the full details click here

The Key points are;

– It will be phased in:

  • £100,000 in 2017 to 2018
  • £125,000 in 2018 to 2019
  • £150,000 in 2019 to 2020
  • £175,000 in 2020 to 2021

– It will then increase in line with Consumer Prices Index (CPI) from 2021 to 2022 onwards.

– Any unused nil-rate band will be able to be transferred to a surviving spouse or civil partner.

– Personal representatives able to nominate property if more than one in estate

– Main residence NRB reduced by £1 for every £2 if the estate is above £2m

– Also available if downsize or cease to own property after 8/7/2015.

Technical details will be available in September 2015