The additional nil rate band known as the residence nil rate band has increased from £100,000 to £125,000 for deaths occurring on or after 6th April 2018.
Where a deceased leaves their interest in the family home to their direct descendants; such as children, step children, foster children, grandchildren and spouse or civil partner of these individuals, the estate will benefit from the residence nil rate band and any other exemptions which may be applicable.
The residence nil rate band will continue to increase as follows:
£150,000 in 2019 to 2020
£175,000 in 2020 to 2021
It will then increase in line with Consumer Prices Index from 2021 to 2022 onwards. Any unused nil-rate band will be able to be transferred to the estate of a surviving spouse or civil partner.