The Residence Nil Rate Band (RNRB) is an additional inheritance tax (IHT) relief introduced in April 2017. It allows individuals to pass on their main residence to their direct descendants (such as children or grandchildren) free from inheritance tax, up to a certain limit. This relief is on top of the standard Nil Rate Band (NRB).
The RNRB is tapered for estates with a net value of more than £2 million. For every £1 over £2 million, the RNRB is reduced by 50p. This means that if the net value of the estate exceeds £2.35 million, the RNRB will be completely lost.
The maximum RNRB for the 2024-2025 tax year is £175,000 per person. This is set to increase in line with the Consumer Price Index (CPI) in future tax years.
Key terms:
Deceased's Main Residence: The property that was the deceased's primary home at the time of their death.
Direct Descendants: Children, grandchildren, and their spouses or civil partners.
Net Value of Estate: The total value of the deceased's assets minus any debts and liabilities.
Nil Rate Band (NRB): The portion of an estate that can be passed on tax-free.
var mainResidenceValueInput = document.getElementById("mainResidenceValue");
var availableRNRBInput = document.getElementById("availableRNRB");
var estateValueOver2MInput = document.getElementById("estateValueOver2M");
var resultDiv = document.getElementById("result");
function calculateRNRB() {
var mainResidenceValue = parseFloat(mainResidenceValueInput.value);
var availableRNRB = parseFloat(availableRNRBInput.value);
var estateValueOver2M = parseFloat(estateValueOver2MInput.value);
var rnrbRelief = 0;
var taperAmount = 0;
// Input validation
if (isNaN(mainResidenceValue) || isNaN(availableRNRB) || isNaN(estateValueOver2M)) {
resultDiv.innerHTML = "Please enter valid numbers for all fields.";
return;
}
// Calculate the taper amount
if (estateValueOver2M > 0) {
taperAmount = estateValueOver2M / 2; // 50p reduction for every £1 over £2m
}
// Calculate the actual RNRB relief
var calculatedRNRB = availableRNRB – taperAmount;
// Ensure RNRB doesn't go below zero
if (calculatedRNRB < 0) {
calculatedRNRB = 0;
}
// The RNRB relief is limited by the value of the main residence
rnrbRelief = Math.min(mainResidenceValue, calculatedRNRB);
resultDiv.innerHTML = "