It was announced in the Summer Budget on 8 July 2015 that a residence nil-rate band for inheritance tax ("IHT") will be introduced from April 2017 for the family home, so that by April 2020, a home worth up to £1 million can potentially be passed on to younger generations free of IHT.

This is welcome news but sadly, as presently drafted, the proposed residence nil-rate band may not benefit everyone: those without children and those with estates in excess of £2 million in particular.

In her monthly blog for the Solicitors Journal (, published on 11 August, Kate Johnson, solicitor in the Private Client team, explains the new rules and their restrictions.

"Nil by inheritance" 

For further analysis, please also see Private Client partner, Camilla Wallace's article:-

"New inheritance tax allowance for the family home" 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.