SVM108340 - Inheritance Tax: Residence Nil Rate Band
If someone dies and their estate is worth more than the basic Inheritance Tax threshold, their estate may qualify for the residence nil rate band (RNRB) before any Inheritance Tax is due. A general overview of the residence nil rate band (RNRB) for Inheritance Tax is explained in the Inheritance Tax Manual at IHTM46000.
RNRB will be straightforward for many estates but in certain instances, where estates are near the tapering threshold and include assets that qualify for 100% business property relief, the IHT caseworker may need SAV’s opinion on open market value.
When these cases are referred for SAV consideration, the IHT caseworker will advise if RNRB applies to the estate, the RNRB tapering threshold, and also the current value of the estate. Any cases involving a significant difference in valuations should be notified to the IHT caseworker in the first instance.
Additional Guidance: SVM150000