Residence nil-rate band
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Definition: An extra £175,000 Inheritance Tax allowance when you leave a qualifying home to direct descendants. Tapers away £1 for every £2 over a £2 million estate.
RNRB is £175,000 per person, also frozen to April 2031. Like the main nil-rate band, any unused RNRB transfers to a surviving spouse or civil partner.
Direct descendants include children, grandchildren, step-children, adopted and foster children, and their spouses. Nieces, nephews, siblings, parents and unmarried partners do not qualify.
Estates over £2 million lose £1 of RNRB for every £2 of excess — fully gone at £2.35 million (single) or £2.7 million (couple). A downsizing addition preserves the band if you sold the home on or after 8 July 2015.
Primary source: gov.uk/guidance/inheritance-tax-residence-nil-rate-band