The residence nil rate band (RNRB) is an addition to the basic nil rate band (NRB), which further reduces the inheritance tax payable on death. It differs from the basic NRB in that it is applied only to the death estate, and not to lifetime gifts within seven years of death. This document discusses the calculation of the amount, tapering provisions, and qualifying residences. It also covers planning points and how to make a claim.

Points discussed within this guidance note:

> What is the residence nil rate band (RNRB)?

The RNRB further reduces the inheritance tax payable on death. It differs from the basic NRB in that it is applied only to the death estate, and not to lifetime gifts within seven years of death. The aim of the allowance is to make it easier to pass on the family home to children and grandchildren without the burden of  inheritance tax and the allowance tapers depending on the value of the property.

> Calculation of the amount of the relief

The so called 'main residence nil rate band' is applied before the basic NRB. This additional amount, termed the 'default allowance', is made up of two components: the 'residential enhancement' at the person's  death,  and the person's 'brought forward allowance'. This note explains how to calculate these sums.

> Calculation of the amount of the relief

> Tapering provisions

> Qualifying residences

> Inherited and closely inherited

> Downsizing

> Practical considerations and planning points

> Making a claim


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