Farra is a death administration assistant for UK families. Get step-by-step guidance for registering a death, applying for probate, notifying banks, and managing bereavement admin. From essential documents to practical checklists, Farra simplifies estate paperwork and funeral-related tasks so you can focus on what matters.
RNRB = additional £175,000 IHT allowance when passing home to children/grandchildren (on top of £325,000 standard). Total per person: £500,000. Couples: £1,000,000 combined. Requirements: owned home, passed to direct descendants (children, grandchildren including adopted/step/foster), estate under £2m (tapers above, lost at £2.35m). Claim via IHT435. Frozen until 2030. Transferable between spouses.
Have more questions on UK death administration? Let Farra help.
The Residence Nil-Rate Band (RNRB) was introduced in April 2017 to help families pass on the family home without Inheritance Tax.
To qualify for the full Residence Nil-Rate Band, ALL these conditions must apply:
The deceased must have owned a home (or share of a home) at the time of death. This includes:
Learn more about what happens to property after death.
"Direct descendants" means:
Does NOT include:
If the estate exceeds £2 million, the RNRB is gradually reduced (see taper section below).
| Situation | RNRB Amount |
|---|---|
| Home value £175K or more | £175,000 (full RNRB) |
| Home value less than £175K | Home value only (e.g., £120K home = £120K RNRB) |
| Married couple (both deceased) | Up to £350,000 combined |
| Estate over £2 million | Reduced (see taper below) |
If the estate exceeds £2 million, the RNRB is reduced by £1 for every £2 the estate exceeds the threshold.
If your spouse or civil partner died before you, you may be able to claim their unused RNRB - even if they died before RNRB was introduced in 2017.
You can claim unused RNRB if:
Amount you can claim:
If you downsized or sold your home after 8 July 2015, you may still claim RNRB through "downsizing relief" - even if you don't own a property when you die.
You can claim if:
RNRB works alongside the standard Nil Rate Band (£325,000) to increase your total tax-free allowance:
| Allowance | Single Person | Married Couple |
|---|---|---|
| Standard Nil Rate Band | £325,000 | £650,000 |
| Residence Nil Rate Band | £175,000 | £350,000 |
| TOTAL TAX-FREE | £500,000 | £1,000,000 |
RNRB is claimed through Inheritance Tax forms when applying for probate.
Ensure your will explicitly leaves your home to children or grandchildren:
To avoid RNRB taper:
If planning to downsize or move to care home:
RNRB works alongside other Inheritance Tax reliefs:
No, but you don't lose it. Your unused RNRB transfers to your spouse. When your spouse dies and leaves the home to your children, they can claim BOTH RNRB allowances (up to £350,000).
Yes, RNRB applies to your share of the property if it passes to your children. If your share is worth less than £175K, your RNRB is limited to that share value.
Yes, if you leave the property to your grandchildren (your deceased child's children). The property can pass "down" a generation and still qualify.
RNRB applies to your main residence only. If you own multiple properties, executors can nominate which property to use for RNRB within 2 years of death (usually choose the most valuable).
Yes, RNRB can apply to foreign property if it was your main residence and passes to direct descendants. Complex rules apply - seek specialist advice.
Inherited property? Decide whether to keep, sell, or rent. Tax implications, CGT, SDLT relief, mortgage options, and step-by-step process.
Do you pay Capital Gains Tax on inherited property? CGT rates, Private Residence Relief, lettings relief, CGT allowance, how to calculate CGT on property sale after death.
Can you live in inherited property rent-free? Executor rights, beneficiary occupancy rules, council tax, CGT relief, permission needed, living there during probate.
Complete guide to selling inherited property: when you can sell, probate requirements, Capital Gains Tax, empty property issues, estate agent vs auction.
Inherited property with mortgage? Your options, mortgage liability, taking over payments, selling with mortgage, insurance claims, and tax implications.
Your AI companion for UK death administration—combining practical guidance with emotional support, available 24/7.
Your AI companion for UK death administration
Free to start • £129 for full access • 30-day guarantee