Inheritance tax · England & Wales
The residence nil-rate band (£175,000)
Last reviewed 18 August 2026
The residence nil-rate band is the allowance that, for many families, lifts an estate clear of tax altogether — provided the home passes down the direct line.
How much, and the condition
The residence nil-rate band adds up to £175,000 where a main residence passes to direct descendants — children, grandchildren and their like. Combined with the ordinary nil-rate band and transferred between spouses, it allows a couple to pass on up to £1 million before tax.
The taper on large estates
The allowance tapers away for larger estates — reduced by £1 for every £2 by which the estate exceeds £2 million — so the wealthiest estates lose the benefit.
Questions
Do I get the residence band if I have no children?+
Generally no — it depends on a home passing to direct descendants.
How do couples reach £1 million?+
Two nil-rate bands (£650,000) plus two residence bands (£350,000), where the conditions are met.
Sources. GOV.UK, Inheritance Tax: residence nil-rate band.