Residence Nil-Rate Band Statistics: Take-Up and Impact

The residence nil-rate band (RNRB) is an extra Inheritance Tax allowance of up to £175,000, on top of the £325,000 nil-rate band, that can apply where a main home passes to children, grandchildren or other direct descendants (gov.uk, as at July 2026, subject to change). In the 2022 to 2023 tax year, 30,600 estates used it (HMRC, as at July 2026, subject to change).

This is a data piece. It sets out the published official figures on how the residence nil-rate band is used: how many estates claim it, how much chargeable value it shelters, and what it costs the exchequer as a relief. It draws only on named official statistics from HMRC and the OBR, each cited at the point of use. It sits alongside our Inheritance Tax Explained guide, our explainer on the residence nil-rate band, and our wider estate planning guide. Figures are current as at July 2026 and are subject to change. Inheritance Tax applies across the UK; where devolved rules differ they are flagged.

What is the residence nil-rate band?

The residence nil-rate band is an additional Inheritance Tax threshold, up to £175,000 per person, available when a residence is left to direct descendants such as children or grandchildren. It sits on top of the standard £325,000 nil-rate band, so it can raise the combined tax-free amount to up to £500,000 per person (gov.uk, as at July 2026, subject to change).

Where a married couple or civil partners can each use both bands, and unused allowance transfers to the survivor, the combined figure can reach up to £1,000,000. The allowance is reduced for larger estates: it falls by £1 for every £2 by which an estate exceeds the £2,000,000 taper threshold (gov.uk, as at July 2026, subject to change). These headline levels are frozen to the end of the 2030-31 tax year (5 April 2031) (gov.uk, as at July 2026, subject to change).

Key figures at a glance

The residence nil-rate band shows up in the official data as tens of thousands of estates each year and several billion pounds of chargeable value kept out of charge. Each row below is a published statistic from a named source, with its reference period and a link. In 2022 to 2023 the relief was used by 30,600 estates and sheltered £7.7 billion of estate value (HMRC, as at July 2026, subject to change).

All figures as at July 2026 and subject to change. Estate and receipts figures are UK-wide.

Cost of the relief in numbers

Measured as a tax relief, the residence nil-rate band has grown in cost as more estates claim it and the allowance reached its full £175,000. HMRC tax relief statistics put its exchequer cost at £1,650 million in 2020 to 2021, £2,060 million in 2021 to 2022, and £2,370 million in 2022 to 2023 (HMRC, as at July 2026, subject to change). The table below sets the take-up and cost figures side by side.

Per HMRC tax relief statistics (January 2026), as at July 2026, subject to change. UK-wide. Later years in that publication are forecasts and are not shown here.

Estates and deaths in context

The residence nil-rate band operates within a wider Inheritance Tax picture in which most estates still pay nothing. In 2022 to 2023 there were 31,500 taxpaying IHT estates, up 3,700 (13%) on the year before, and 4.62% of UK deaths resulted in an Inheritance Tax charge (HMRC, as at July 2026, subject to change).

The residence allowance can help some estates that hold a home stay below the point at which a charge arises, which is one reason take-up sits in the tens of thousands even though far fewer estates end up taxable. Total Inheritance Tax liabilities created in 2022 to 2023 were £6.70 billion, up £0.71 billion (12%) on the prior year (HMRC, as at July 2026, subject to change).

What the numbers mean

Read together, the figures describe a relief that is widely used but concentrated among estates that hold a home and pass it to descendants. Around 30,600 estates used the residence nil-rate band in 2022 to 2023, sheltering £7.7 billion of value, while only 31,500 estates were taxable at all that year (HMRC, as at July 2026, subject to change). Many estates that claim it are therefore near the threshold rather than deep into charge.

Because the £175,000 allowance is now frozen while property prices can move, its real value tends to erode over time, and the taper means it phases out for larger estates above £2,000,000 (gov.uk, as at July 2026, subject to change). The conditions attached, such as leaving a qualifying home to direct descendants, mean the allowance does not reach every estate, and whether it applies to a particular estate depends entirely on its own facts. It can be worth discussing the figures with a qualified professional rather than reading a national trend as a personal outcome. Forecasts and rules can change at any fiscal event.

Scotland, Wales and Northern Ireland

Inheritance Tax is a UK-wide tax, so the £325,000 nil-rate band, the up to £175,000 residence nil-rate band, the £2,000,000 taper threshold and the 40% rate apply the same way in England, Wales, Scotland and Northern Ireland (gov.uk, as at July 2026, subject to change). What differs across the nations is the surrounding law, such as succession rules and, in Scotland, the legal rights of children and spouses, and the process for winding up an estate. The statistics above are collected UK-wide and are not broken down by nation here.

Sources and methodology

Every figure on this page comes from a named official source and was checked against that source before publication. No number has been estimated, rounded beyond the source, or extrapolated. Where a source gives a forecast, it is described as such. The sources used are listed below with their reference periods.

• Core rates and allowances: gov.uk, Inheritance Tax (£325,000 NRB, up to £175,000 RNRB, up to £500,000 and £1,000,000 combined, 40% rate). As at July 2026.
• RNRB amounts and taper: gov.uk, residence nil-rate band guidance (£2,000,000 taper threshold, reduced £1 for every £2 above). As at July 2026.
• RNRB phase-in history: gov.uk, Inheritance Tax thresholds and interest rates (£100,000 in 2017-18 rising to £175,000 in 2020-21). As at July 2026.
• RNRB estates and value sheltered: HMRC Inheritance Tax liabilities statistics, commentary (30,600 estates, £7.7bn sheltered, 31,500 taxpaying estates, 4.62% of deaths, £6.70bn liabilities, 2022-23).
• RNRB cost and claimants over time: HMRC tax relief statistics (January 2026) (25,200 to 30,600 claimants; £1,650m to £2,370m cost, 2020-21 to 2022-23).
• Extended freeze: gov.uk publication (from 6 April 2028) (bands frozen to end of 2030-31 (5 April 2031)).
• Forecast receipts: Office for Budget Responsibility, Inheritance tax (£8.7bn, 0.3% of national income, about £300 per household, 2025-26 forecast).

Frequently asked questions