Legal News | 11.08.22
Home is where the tax relief is
Our homes are often our most valuable assets and with them they may bring a potentially valuable tax relief.
What is it?
The Residence Nil Rate Band (RNRB) is a tax-relief available to the estates of deceased UK home-owners who have left their property in their Will, or as part of an intestacy, to a direct descendant on their death.
Who are direct descendants?
HMRC have defined this to include:
• child (including step-children, and adopted children), grandchild or other linear descendant;
• spouse or civil partner of a linear descendant
But, this does not include:
• nieces or nephews;
• siblings.
How much relief is available?
The RNRB is currently capped at £175,000 for estates worth less than £2million. The amount of RNRB available is reduced by £1 for every £2 by which the estate is worth over £2million. The RNRB may also be transferred between spouses and both allowances used on the second death if it was not previously claimed, creating a combined relief of £350,000.
How can I claim it?
This is a tax-relief which must be claimed directly from HMRC during the administration of an estate.
If you would like more advice regarding the RNRB or other tax planning, please contact our Private Client Team at wealth@wansbroughs.com.
