Residential Nil Rate Band
In addition to their NRB, passing a qualifying residential property to a direct descendant can provide the residential nil rate band (RNRB) of up to £175,000.00 totaling the untaxable estate value to £500,000.00 per person.
In cases where a NRB is transferred and the Estate also qualifies for a RNRB, the total amount of an estate passing without being subject to paying IHT could be up to £1,000,000.00.
If the total value of the Estate is greater than £2,000,000.00, however, then a taper is aportioned to the RNRB to be used. For every £2.00 above £2,000,000.00, the RNRB is reduced by £1.00.