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Residence nil rate band

The residence nil rate band is only available against the value of your home.

Therefore, if an individual has inherited their spouses allowance, they will have £350,000 RNRB from 6 April 2020 but if their home is only worth £200,000 they will only qualify for £200,000 nil rate band, the extra £150,000 is lost.

It may become viable to build an extension, or upsize to make full use of the allowance.

Alternatively, if they have "downsized" since July 2015 then they may be able to claim a higher amount:

https://www.gov.uk/guidance/how-downsizing-selling-or-gifting-a-home-affects-the-additional-inheritance-tax-threshold

 

FOR INVESTMENT ADVICE REGARDING YOUR PENSION OR OTHER INVESTMENTS PLEASE CONTACT Elliott Wilson ACSI DipPFS AF3

 

While we keep information on the website as up to date and as accurate as possible, the information on this website does not form part of our advice process. Cambridge Pensions Ltd cannot accept any liability for any decisions made by a client or member of the general public based on any information contained on this website. The value of your investments can go down as well as up and you may get back less than has been paid in.


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