For many families, the home is the biggest asset — and often the trickiest.
Key points:
- The Residence Nil-Rate Band (up to £175,000) applies if you pass your home to direct descendants.
- Couples can combine allowances.
- Estates over £2m lose some or all of the allowance.
Nuances that trip people up:
- Downsizing? You don’t lose the allowance — but the paperwork has to be right.
- Joint tenancy vs tenants in common changes who inherits and how reliefs work.
- Second homes and buy-to-lets don’t qualify.
Practical tip: Don’t assume “the house will just go to the kids tax-free.” The detail matters.
Call to action: Let us review how your property fits into your IHT plan.
Back to You are not Immortal – a practical guide to a delicate topic – IHT
