Malcolm Finney looks at the residence nil rate band and its possible transfer.
The residence nil rate band (RNRB), subject to downsizing relief, applies on death where the deceased owns a ‘qualifying residential interest’ at death. For downsizing relief, the deceased must have owned an interest in a residence which was disposed of on or after 8 July 2015.
The effect is, therefore, that no RNRB is in point where the deceased never owned a qualifying residential interest or disposed of such an interest before 8 July 2015.
The RNRB legislation came into effect for deaths on or after 6 April 2017.
Using percentages not absolute amounts
For an RNRB to be available on death, the qualifying residential interest must be ‘closely inherited’, i.e., inherited by direct descendants (children or grandchildren) of the deceased.,
