Following the Budget announcement that there would be a new IHT relief when a residence is passed on death to a direct descendant, HMRC have now issued details of the band values for the next four years. The relief is to be known as "Residence Nil Rate Band" (RNRB) and will be introduced from 6 April 2017.
The RNRB will be phased in, as follows:
- £100,000 in 2017 to 2018
- £125,000 in 2018 to 2019
- £150,000 in 2019 to 2020
- £175,000 in 2020 to 2021
Thereafter, it will rise in line with the Consumer Price Index.