In July 2015 the introduction of a Residence Nil Rate Band was announced. Superficially, this new measure appeared to honour the pledge made by the Conservative party in 2007 to increase the Nil Band Rate to £1m. However, in reality this will only be the case where spouses or civil partners meet the particular conditions required to claim both the Nil Rate Band and the new Residence Nil Rate Band (RNRB). There will be many cases where the RNRB cannot be claimed.
This briefing note, written by Associate in the Private Wealth team, Edward Porter aims to explain the recent Nil Rate Band changes, some details of which are not yet clear but what is certain is that the Nil Rate Band has not been simply raised to £1m.