# Am I eligible for the residence nil-rate band?

> Eligibility · Last reviewed 26 May 2026

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## In short

An estate qualifies for the £175,000 residence nil-rate band when a qualifying home is left to direct descendants (children, grandchildren or their spouses) on death, and the net estate is no more than £2 million. The band tapers above £2m and is fully lost at £2.35m.

The residence nil-rate band (RNRB) is an Inheritance Tax allowance on top of the £325,000 main nil-rate band. It is claimed by the personal representatives on form IHT435, and any unused RNRB transfers to a surviving spouse or civil partner.

Typical amount: Up to £175,000 per person (frozen to April 2030). Combined with the main nil-rate band, couples can pass up to £1 million tax-free.

## Who usually qualifies

- The deceased owned a qualifying residential interest at death (a property they had lived in at some point)
- The home passes to direct descendants: children, grandchildren, step-children, adopted or foster children, and their spouses or civil partners
- The net estate (after debts) is under £2 million before the taper applies
- Where the home was sold or downsized on or after 8 July 2015, the downsizing addition can preserve the band
- Spousal transfer: any unused RNRB of a deceased spouse can be added to the survivor's RNRB at the second death

## Who usually does not

- Estates where no home is left to direct descendants (e.g. property left only to siblings, nieces, parents or unmarried partners)
- Childless individuals with no qualifying direct descendants
- Estates over £2.35 million (single) or £2.7 million (couple) — the taper has wiped out the RNRB entirely
- Buy-to-let only properties that the deceased never lived in
- Homes left to most discretionary trusts (unless trust deed identifies direct descendants as the qualifying class)

## How to check

- HMRC's guidance and worked examples are at gov.uk/guidance/inheritance-tax-residence-nil-rate-band
- Use form IHT435 (RNRB claim) and IHT436 (transfer of unused RNRB) — without these the band is missed
- Free benefits calculators don't cover RNRB — for borderline estates over the £2m taper, take professional advice on lifetime gifting to bring the estate under the threshold

## Frequently asked questions

### Can a couple really pass on £1 million tax-free?

Yes — but only where both spouses use the main £325,000 nil-rate band and the £175,000 residence nil-rate band, the home is closely inherited by direct descendants, and the estate is under the £2 million taper. Childless couples max out at £650,000.

### Does the home have to be left under the will?

It can pass by will, intestacy, deed of variation, or as a 'gift with reservation of benefit' that ends on death. What matters is that the qualifying residential interest is closely inherited by a direct descendant.

### What is the downsizing addition?

If the deceased sold or moved out of a former home on or after 8 July 2015, and the smaller home (plus cash or other assets equal to the lost RNRB) passes to direct descendants, the personal representatives can claim a downsizing addition on form IHT436 to preserve the band.

## Sources

- [GOV.UK — Residence nil-rate band](https://www.gov.uk/guidance/inheritance-tax-residence-nil-rate-band)
- [GOV.UK — Inheritance Tax](https://www.gov.uk/inheritance-tax)

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.