Will my mum lose a £175k inheritance tax allowance when she moves?
Daily MailHeather Rogers: Find out how to ask her a tax question in the box below My mother's estate including her flat is more than £325,000 and less than £500,000. She will not necessarily lose her full 'own home allowance' - which is technically known as the residence nil rate band - for inheritance tax. Many people are allowed to leave a further £175,000 worth of assets without them becoming liable for inheritance tax, if their home forms part of their estate and they leave it to direct descendants. When someone has sold, given away or downsized to a less valuable home before they die, the RNRB might still be applied to their estate if they qualify for a downsizing addition. To qualify, ALL these conditions must apply: - The person sold, gave away or downsized to a less valuable home, on or after 8 July 2015 - The former home would have qualified for the RNRB if they'd kept it until they died - Their direct descendants inherit at least some of the estate - this is crucially important.
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