UK Inheritance Tax Residence Nil-Rate Band (RNRB) Calculator 2026/27
Calculate UK Inheritance Tax for 2026/27 with the full Residence Nil-Rate Band (RNRB) treatment. Handles the £325,000 standard NRB, the £175,000 RNRB when a qualifying residence passes to direct descendants, the £2M estate taper (£1 RNRB lost per £2 above £2M), the transferable spouse RNRB (combined up to £350,000), and the 36% reduced rate when 10%+ of net estate goes to charity. Free, HMRC-aligned, runs in your browser.
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Source: HMRC — Inheritance Tax: Residence Nil Rate Band (gov.uk) + Spring Budget 2026 frozen-threshold confirmation. Last updated: May 3, 2026.
What Is the UK Residence Nil-Rate Band (RNRB)?
The Residence Nil-Rate Band (RNRB) is an additional UK Inheritance Tax allowance, introduced in April 2017, available when a qualifying residential interest passes on death to direct descendants (children, grandchildren, stepchildren, adopted children, or foster children) of the deceased. For tax year 2026/27, the RNRB stands at £175,000 — frozen at this level until 5 April 2030 per the Autumn Budget. It sits on top of the £325,000 standard Nil-Rate Band (NRB), giving an individual a combined allowance of up to £500,000 against an estate that includes a qualifying home left to direct descendants. Source: HMRC — gov.uk.
RNRB is not automatic. It only applies if (a) the deceased had a qualifying residential interest at some point in their life, (b) that interest is closely inherited by direct descendants, and (c) the estate does not exceed the £2,000,000 taper threshold by too much. If the home was sold or downsized before death, a separate "downsizing addition" can preserve the RNRB — that is a complex area requiring HMRC IHT436 / IHT435 forms.
The £2,000,000 Estate Taper (How RNRB Reduces)
The RNRB is tapered for larger estates. For every £2 the estate exceeds £2,000,000, £1 of RNRB is withdrawn. Practically, this means:
- Estate ≤ £2,000,000 — full £175,000 RNRB available (subject to other rules).
- Estate at £2,350,000 — RNRB reduced to zero for an individual (single, no spousal transfer).
- Estate at £2,700,000 — combined £350,000 RNRB tapered to zero even with full spousal transfer.
The taper test uses the gross estate before reliefs and exemptions, including chargeable lifetime transfers within seven years. This catches more taxpayers than expected. If your estate is approaching £2M, lifetime gifting, charity bequests, or business property relief planning can preserve the RNRB.
Transferable RNRB Between Spouses and Civil Partners
If a spouse or civil partner died before you (whether before or after April 2017 — even if they died before RNRB existed), any unused proportion of their RNRB transfers to your estate. The transfer is calculated as a percentage of the RNRB unused at the first death, applied against the RNRB amount at the second death. Example: spouse 1 died in 2018 leaving everything to spouse 2, using 0% of their RNRB. Spouse 2 dies in 2026/27 — spouse 2's estate gets a 100% transfer = an additional £175,000 RNRB on top of their own £175,000, for £350,000 combined RNRB. Combined with two NRBs (£650,000) the total nil-rate threshold rises to £1,000,000 against an estate with a qualifying home to descendants.
The transfer must be claimed on form IHT436 within two years of death (extendable in some cases). It is not automatic — executors must apply.
Reduced 36% Rate for Charitable Estates
Where 10% or more of the net estate (after NRB, RNRB, and other reliefs but before the charity bequest itself) is left to a UK-registered charity, the standard 40% IHT rate is reduced to 36% on the rest of the estate above the available nil-rate bands. The 10% test applies separately to each "component" of the estate (survivorship, settled, free) — it is rarely advantageous on smaller estates but can produce meaningful savings on large estates with significant charitable intent. Combined with the RNRB and spousal transfer, a couple leaving a £2M estate with a qualifying home and a 10%+ charity bequest can pay materially less IHT than a couple with no charitable plan. Last updated: May 3, 2026.
Frequently Asked Questions
What is the UK Residence Nil-Rate Band (RNRB) for 2026/27?
For tax year 2026/27, the Residence Nil-Rate Band (RNRB) is £175,000 — frozen at this level until 5 April 2030 per the Autumn Budget. It sits on top of the £325,000 standard Nil-Rate Band (NRB), giving an individual a combined allowance of up to £500,000 against an estate that includes a qualifying home left to direct descendants (children, grandchildren, stepchildren, adopted, foster).
Who counts as a direct descendant for RNRB?
Direct descendants for RNRB purposes include children, grandchildren, great-grandchildren (and so on down the line), stepchildren, adopted children, and foster children. Spouses and civil partners of these descendants also count, but only while still legally married/in partnership at the date of the descendant's death. Siblings, nieces, nephews, and friends do not qualify.
How does the £2 million taper work?
For every £2 the gross estate exceeds £2,000,000, £1 of RNRB is withdrawn. So a single individual with no spousal transfer loses all £175,000 RNRB at an estate value of £2,350,000. A couple with a full spousal transfer (combined £350,000 RNRB) loses it all at £2,700,000. The taper uses the gross estate before reliefs but after debts, so business property relief and agricultural property relief do not help the taper test.
Can my spouse transfer their unused RNRB to me?
Yes. Any percentage of RNRB unused at a previously deceased spouse's death transfers to your estate. The transfer is calculated as a percentage of the RNRB unused at the first death, applied against the RNRB rate at the second death. Even if the first spouse died before April 2017 (when RNRB was introduced), the surviving spouse's estate can still claim 100% transfer if no qualifying residence passed to descendants on the first death. Claim on form IHT436 within two years.
When does the 36% reduced IHT rate apply?
The 36% reduced rate applies when 10% or more of the net estate (after available NRB, RNRB, and other reliefs but before the charity bequest itself) is left to a UK-registered charity. The 10% test applies separately to each "component" of the estate (survivorship, settled property, free estate). On larger estates the reduced rate can save more in tax than the charity bequest costs, but the math depends on size and component structure — get advice if planning a large charitable estate.
Are NRB and RNRB frozen?
Yes. Both the standard NRB (£325,000) and the RNRB (£175,000) are frozen at current levels until 5 April 2030, per the Autumn Budget. Because asset prices have continued to rise, this freeze is gradually pulling more estates into IHT — a process known as "fiscal drag." The Spring Budget 2026 confirmed no early thaw is planned. Verify with the latest gov.uk Inheritance Tax page before relying on these figures.