Budget summary, autumn 2018
As previously announced, the nil rate band remains frozen at £325,000 until the end of 2020/21. A 'residential nil rate band (RNRB) enhancement' began to take effect for death transfers from 6 April 2017, applying an additional nil rate band (initially £100,000; £150,000 from 6 April 2019 to 5 April 2020; and rising to £175,000 by 2020/21) where a taxpayer's residence (or assets representing one following a sale) is left to direct descendants. A married couple will potentially then be able to leave £1 million free of IHT to their descendants (£325,000 plus £175,000 from each parent), but the rules are complicated. Minor changes have been made to the RNRB rules to ensure that they work as intended.