Confirmed to be included in the Finance (No.2) Bill 2015 which will be published on 15th July 2015

Inheritance Tax

An Additional Nil Rate Band (ANRB) will be introduced when a ‘residence’ is passed on death (for deaths after 6th April 2017) to children or grandchildren. The ANRB will be:

£100,000 for 2017/2018
£125,000 for 2018/2019
£150,000 for 2019/2020
£175,000 for 2020/2021

and for future years will increase in line with the Consumers Price Index.

  • As is the case with the Nil Rate Band, the ANRB is transferable between spouses or Civil Partners as long as one of the deaths has occurred after 6th April 2017.
  • The ANRB will reduce by £1 for every £2 the ‘net estate’ exceeds £2m, so, for net estates of over £2.2m (in 2017/18) only the usual NRB will be available.
  • Where the deceased has downsized (after 8th July 2015), it will be possible to pass the ‘sale proceeds’ of the residence in accordance with the above ANRB provisions – but this element is still in consultation stage and may be introduced in the Finance Bill (2016)
  • If the deceased had more than one residence, then it will be up to the executors to nominate which one will receive the benefit of the ANRB – as long as it has been a ‘residence’ of the deceased at some point in the past (ie, not a buy to let).
  • The inheritance tax (IHT) nil rate band, which is currently frozen at £325,00 until April 2018, will continue to be frozen at £325,000 until April 2021.


  • The proposed changes to the use of multiple trusts that have been discussed previously look set to be included in Finance (No.2) Bill 2015 due to be published on 15th July 2015.
  • Generally, this will only affect:
    1. Single people with assets in excess of the NRB
    2. Situations where assets are passed to discretionary trusts on the same day.
  • There are still many reasons why multiple trusts would be beneficial, even in the above scenarios, but we will be happy to discuss this on a case by case basis.