Residence Nil-Rate Band
The residence nil-rate band (RNRB) is an additional IHT allowance of up to £175,000 per person, available when a family home is left to direct descendants — children, grandchildren, or stepchildren.
Combined with the standard nil-rate band, a surviving spouse can potentially pass up to £1 million to children free of IHT. The RNRB tapers away for estates above £2 million at a rate of £1 for every £2 over the threshold.