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EJ Summers – Winner of Scottish Young Accountant of the Year Award
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Inheritance Tax
The inheritance tax (IHT) nil rate band (NRB) is set at £325,000 until April 2028. The rates of IHT payable on death are at 40% or 36% where at least 10% of the net estate is left to charity. An additional nil-rate band (the ‘residence nil rate band’ (RNRB)) applies where an individual dies after 5 April 2017 and their estate is above the NRB. The RNRB applies when the whole or part share in the deceased’s home is passed on death to direct descendants. The maximum value of the RNRB is the lower of: the value of the home passed on, and the amount in the table below
| Year of death | Value of RNRB |
| 2017/18 | £100,000 |
| 2018/19 | £125,000 |
| 2019/20 | £150,000 |
| 2020/21 | £175,000 |
| 2021/22 | £175,000 |
| 2022/23 | £175,000 |
| 2023/24 | £175,000 |
| 2024/25 | £175,000 |
The value of RNRB is tapered away at £1 for every £2 by which the value of the total estate exceeds £2 million. This threshold is frozen until 2027/28.
