Inheritance tax: transferable nil rate bands – part 2

Compliance with the inheritance tax nil rate band (NRB) is a complex area but beneficial from a tax perspective as it allows a £1m IHT exemption. Lisa Macpherson ATT TEP, head of tax technical at PKF Francis Clark, examines transferable bands and residence issues

This is the first of two articles looking at inheritance tax (IHT) nil rate bands (NRBs). References to spouses in this article should be taken to include civil partners, and legislative references are to Inheritance Tax Act 1984 (IHTA 1984), unless otherwise indicated. From 13 March 2014 the term spouse includes a same sex spouse following the coming into force of the Marriage (Same Sex Couples) Act 2013.

The nil rate band

The NRB is the maximum amount that can be transferred at an IHT rate of 0%. With the introduction of the transferable NRB (TNRB) and the residence (RNRB) - and transferable (TRNRB) - bands, this has become a complex area.

Your free features:

Breaking news and expert analysis
Customisable daily newsletters
Six free CPD learning modules each year
Personalised CPD tracker
Top 75 Firms league tables
Regulatory changes
Hardman’s Tax Data

Tax | Wills, estates and taxes: what you need to know

Tax | Personal tax changes from 6 April 2026

Tax | Business property relief changes: tax and succession planning

Tax | Q&A: inheritance tax planning and moving abroad

Tax | Farmers given £2.5m allowance for inheritance tax in u-turn

Navigate

Tax Services

The nil rate band

Your free features:

Sign up to Business & Accountancy Daily