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Pocketmags Digital Magazines

DOMICILE DILEMMA

The new Residence Nil Rate Band could have some complicated domicile-related ‘international’ aspects to consider

The residence nil-rate band (RNRB) is an extra nil-rate band (NRB) for inheritance tax (IHT) purposes.

It is available in addition to the ‘standard’ NRB if the qualifying conditions are met. Namely if:

• the client dies on or after 6 April 2017;

• the client owns a home, or a share of one, so that it’s included in their estate; or

• direct descendants of the client such as children or grandchildren inherit the home or a share of it.

The RNRB will be:

• £100,000 in 2017/18

• £125,000 in 2018/19

• £150,000 in 2019/20

• £175,000 in 2020/21

For estates valued at more than £2m, the RNRB (and any transferred RNRB) will be gradually withdrawn or tapered away. With regard to the transfer rules, for married couples and civil partners any unused RNRB can be transferred when the surviving spouse or civil partner dies after 5 April 2017, regardless of when the first of the couple died.

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