Free tool · 2025/26
How much residence nil-rate band can you claim?
Check whether your estate qualifies for the extra residence allowance — and how much survives the home cap and the £2m taper. No sign-up, no obligation.
Your home and estate
Stepchildren, adopted and foster children all count. Nieces and nephews don’t.
Indicative result
Available residence allowance
£350,000
on an estate of £900,000 · on top of the nil-rate band
- A qualifying home passes to direct descendants — the residence allowance applies.
- Married / civil partnership: the combined allowance is up to £350,000 on the second death.
The residence allowance is one piece of the sums — see the full picture with the full Inheritance Tax calculator.
Your allowances are only as good as the will that uses them — a free review confirms yours are set up to land.
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Illustrative check only, not advice. It applies the standard 2025/26 residence nil-rate band rules — the home cap, the £2m taper and transfers from a late spouse or civil partner — and does not model the downsizing addition, trusts, or your full circumstances. Wills, LPAs and trusts are not regulated by the FCA. Your actual position would be confirmed by our team.
What the residence nil-rate band is
The residence nil-rate band is an extra Inheritance Tax allowance of up to £175,000 per person — on top of the standard £325,000 nil-rate band — when a home you own (or owned) passes to direct descendants. It is capped at the home’s value, and unused allowance passes between spouses and civil partners, so a couple’s combined residence allowance can reach £350,000. It is the difference between a couple passing on £650,000 and £1,000,000 tax-free — and it is also the easiest allowance to lose by accident.
Two mechanics catch people out. First, the taper: above £2,000,000 the allowance reduces by £1 for every £2 the estate exceeds the threshold — and any transferred allowance from a late spouse tapers with it. Second, the descendants test: the home must pass to children or grandchildren, a group that includes stepchildren, adopted and foster children but not nieces, nephews or siblings. A will that routes the home the wrong way — including through some trust structures — can lose the allowance entirely.
Transfers, downsizing and the small print
If a late spouse or civil partner left their residence allowance unused, up to £175,000 of it can be claimed on top of your own — the executors make the claim during probate; it is not automatic. And if you downsized or sold a home on or after 8 July 2015, the downsizing addition can preserve the allowance you would otherwise have lost, provided equivalent value passes to descendants. The checker above flags downsizing rather than modelling it, because the calculation turns on the disposal history and the wording of the will.
The residence allowance is one input into the full sums — estimate your overall position with the full Inheritance Tax calculator, read how the thresholds work, or see our inheritance tax planning service.
Residence nil-rate band: common questions
What is the residence nil-rate band?+
The residence nil-rate band (RNRB) is an extra Inheritance Tax allowance of up to £175,000 per person, on top of the standard £325,000 nil-rate band. It applies when a home you own — or owned — passes to direct descendants, and it is capped at the home's value. Combined with spouse transfers, it is how a married couple can often pass on up to £1,000,000 before any Inheritance Tax is due. The allowance is frozen until April 2030.
Who counts as a direct descendant?+
Children and grandchildren — and the definition is wider than many people expect: stepchildren, adopted children and foster children all count, as do their own descendants, and the spouses or civil partners of any of them. Nieces, nephews, siblings and other relatives do not qualify, however close the relationship. If the home passes to anyone outside the qualifying group, the allowance is lost on that share.
How does the £2 million taper work?+
Once an estate exceeds £2,000,000, the residence nil-rate band reduces by £1 for every £2 over the threshold. A single person's £175,000 allowance is gone entirely at £2,350,000, and a couple's combined £350,000 at £2,700,000. Any transferred allowance from a late spouse sits inside the same pool, so it tapers too. The taper is measured against the estate before reliefs — which is why larger estates often review their position well before the threshold.
Can I transfer the allowance from a late spouse or civil partner?+
Yes. If a late spouse or civil partner did not use their residence nil-rate band, up to £175,000 of it can be transferred to the survivor's estate — even if they died before the allowance existed in April 2017. The transfer is not automatic: the executors must claim it during probate. Together with the survivor's own allowance, the combined residence allowance can reach £350,000, subject to the home cap and the taper.
What if I downsized or sold my home?+
You may not lose the allowance. If you sold your home, downsized to a cheaper one, or moved into care on or after 8 July 2015, the downsizing addition can preserve the residence nil-rate band you would otherwise have had — provided assets of equivalent value pass to direct descendants. The calculation depends on the disposal history and what the will says, so this checker flags it rather than modelling it; it is exactly the kind of point a review confirms.
Do I need to leave the house itself to my children?+
Not necessarily. The allowance normally attaches to a home passing to direct descendants, but if you have downsized or sold a home since 8 July 2015, value equivalent to the lost allowance can still qualify under the downsizing rules when other assets pass to descendants instead. What does not work is leaving the home in a way that bypasses descendants — some trust structures can inadvertently lose the allowance, which is why the wording of the will matters as much as the numbers.
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