One of the headlines from the last Budget claimed that no couple with a combined estate of less than £1m should have to pay inheritance tax and that the family home would be saved from Inheritance Tax. Like all things to do with tax it is not that simple and the devil is in the detail.
In April 2017 the new catchily-titled Inheritance Tax Residence Nil Rate Band or RNRB as it is known will come into force. It is an Inheritance Tax (IHT) allowance or dedicated residence nil-rate band worth up to £175,000 in addition to an individual’s
own standard nil rate-band of £325,000. The aim is, predominantly, to protect the main residence from Inheritance Tax and is conditional on the main residence being passed down to direct descendants e.g. children and grandchildren.