Married 100%
£0
£850k · XFER · rank #1
- Allowance
- £1,000,000
- RNRB applied
- £350,000
🇬🇧£850k · XFER vs RNRB
Married 100% vs NRB + RNRB Inheritance Tax
On £850,000, Married couple (full transfer) models about £0 vs £140,000 under NRB + residence nil-rate — a £140,000 gap for heirs.
By Sammy S. · Founder · AuthorUpdated for 2026
Better for heirs
Married couple (full transfer) costs less
£0 vs £140,000, a £140,000 difference.
Side-by-side scoreboard
NRB + RNRB
£140,000
£850k · RNRB · rank #2
- Allowance
- £500,000
- RNRB applied
- £175,000
Key takeaways
- On £850,000, Married couple (full transfer) models about £0 vs £140,000 under NRB + residence nil-rate — a £140,000 gap for heirs.
- Headline ranks (lowest tax first): Married couple (full transfer) #1 · NRB + residence nil-rate #2 among 3 scenarios.
- Total nil-rate allowance on £850k: Married 100% £1,000,000 vs NRB + RNRB £500,000.
- RNRB needs a qualifying home (or share) left to direct descendants — NRB-only ignores the home.
- Personalize estate value, home to descendants, and transfer % in the UK Inheritance Tax calculator.
How to read Married 100% vs NRB + RNRB
Both columns use the same estate ladder. Headline ranking is £850,000 with £400,000 home to descendants when the scenario claims RNRB.
Married couple (full transfer) is better for heirs by about £140,000 at £850k. Allowance gap: £500,000.
Estate sensitivity — £500k vs £850k vs £1.5m
At £500k: Married 100% £0 vs NRB + RNRB £0 (gap £0).
At £850k: Married 100% £0 vs NRB + RNRB £140,000 (gap £140,000).
At £1.5m: Married 100% £200,000 vs NRB + RNRB £400,000 (gap £200,000).
RNRB taper above £2m
RNRB reduces by £1 for every £2 of estate above £2,000,000. At £2.5m the Married 100%/NRB + RNRB gap is £170,000.
Large estates can lose all RNRB — then only NRB (and any transferred NRB) remains.
Spouse / civil partner transfers
Unused NRB and RNRB can transfer to a surviving spouse or civil partner (GOV.UK). The married-couple scenario assumes 100% unused transfer on both bands.
Transfers require a claim within 2 years of the second death (IHT400 + IHT402 on full returns) — this hub models the allowance maths, not claim paperwork.
Official sources behind this compare
Thresholds: GOV.UK Inheritance Tax thresholds and interest rates (NRB to 5 April 2031; RNRB to 5 April 2030).
RNRB conditions and taper: GOV.UK residence nil-rate band guidance. Home gifts: GOV.UK — Passing on a home.
Spouse transfers: GOV.UK — Transferring unused basic threshold.
Methodology
£850,000 net estate · £400,000 home to direct descendants (RNRB scenarios) · 40% standard rate · no spouse/charity exemptions.
Figures are calculated from our engine — the same engine as the UK Inheritance Tax calculator.
Not estate-planning or probate advice.
Official rules behind this compare
Summarised from GOV.UK / HMRC. Full source list is at the bottom of this page.
Nil-rate band & rates
- Basic nil-rate band £325,000 from 6 April 2009 through 5 April 2031
- Residence nil-rate band £175,000 from 6 April 2020 through 5 April 2030
- Standard rate 40% on the taxable slice above available allowances
When there is normally no IHT
- Estate below the £325,000 threshold
- Everything above the threshold left to a spouse, civil partner, charity, or community amateur sports club
- Home left to children/grandchildren can raise the threshold toward £500,000
Passing on a home
- No IHT when the home passes to a spouse or civil partner
- Home left to anyone else counts toward the estate
- RNRB needs children/grandchildren (incl. adopted, foster, step); full extra band when the estate is not more than £2m (taper starts above £2m)
- Living rent-free in a gifted home is usually a gift with reservation
Residence nil-rate band
- RNRB applied is the lower of the home (or share) to direct descendants and available RNRB (max £175,000 before transfer)
- Taper: £1 reduction per £2 of estate above £2,000,000
- Unused RNRB can transfer to a surviving spouse/civil partner
- RNRB does not shelter lifetime gifts the way NRB can
Estate ladder gaps
| Estate | Married 100% | NRB + RNRB | Gap |
|---|---|---|---|
| £400,000 | £0 | £0 | £0 |
| £500,000 | £0 | £0 | £0 |
| £650,000 | £0 | £60,000 | £60,000 |
| £850,000 | £0 | £140,000 | £140,000 |
| £1,000,000 | £0 | £200,000 | £200,000 |
| £1,500,000 | £200,000 | £400,000 | £200,000 |
| £2,500,000 | £700,000 | £870,000 | £170,000 |
Allowance layers
Married 100% allowances
On £850k: total nil-rate £1,000,000; RNRB applied £350,000; tax £0.
NRB + RNRB allowances
On £850k: total nil-rate £500,000; RNRB applied £175,000; tax £140,000.
Rate
Standard 40% on the taxable slice (charity reduced rate not modelled on this hub vignette).
Myths vs facts
“Everyone gets a £1m IHT allowance.”
£1m is the combined ceiling when both spouses fully transfer unused NRB + RNRB and a qualifying home goes to direct descendants — not an automatic personal allowance.
“RNRB always applies if you own a home.”
The home (or share) must pass to direct descendants. Leaving it to a friend or distant relative does not unlock RNRB (GOV.UK — Passing on a home / RNRB guidance).
“The £850k ranking never flips.”
At £2.5m the gap is £170,000 after RNRB taper — always re-check estate size.
“Transferred bands are automatic.”
HMRC requires a transfer claim within 2 years of the second death — this model assumes the claim succeeds at the stated %.
Decision guides
Single person, no qualifying home gift
Use NRB-only — RNRB will not apply.
Home to children / grandchildren
Compare NRB-only vs NRB+RNRB — residence relief can cut tax sharply at or below £2m.
Second death after spouse transfer
Use the married-couple scenario when unused bands transfer at (or near) 100%.
Estates near/above £2m
Watch RNRB taper — residence relief can disappear entirely.
Exclusions
- Lifetime gifts / 7-year taper
- Business Relief / Agricultural Relief
- Trusts and reserved-interest rules
- Downsizing addition to RNRB
- Full charity 36% rate baseline arithmetic
- Probate fees and executorship costs
FAQ
Married couple (full transfer) by about £140,000.
Married couple (full transfer): NRB transfer 100%, RNRB transfer 100%, home to descendants yes (capped at £400k). NRB + residence nil-rate: NRB transfer 0%, RNRB transfer 0%, home yes.
RNRB is up to £175,000 when a home or share passes to direct descendants. It tapers £1 for every £2 of estate above £2,000,000.
Yes — unused NRB and RNRB can transfer to a surviving spouse or civil partner (up to 100%). The married-couple scenario models a full unused transfer.
At £500k the gap is £0; at £1.5m it is £200,000. Above £2m, RNRB taper can shrink residence relief.
Against HMRC thresholds: £500k NRB-only → £70k tax; £500k with full RNRB → £0; £650k with 100% NRB transfer (no RNRB) → £0. Engine: calculateInheritanceTaxUk.
Lifetime gifts taper relief, Business/Agricultural Relief, trusts, downsizing addition, full charity reduced-rate baseline arithmetic, and probate fees. Not estate-planning advice.
Related comparisons
Pick another pair
Compare any two IHT scenarios
Inheritance Tax on £850,000 — NRB · RNRB · spouse transfer.
Validation notes
- £500,000 NRB-only → £70,000 tax ( (£500k − £325k) × 40% ) — matches GOV.UK overview example.
- £500,000 with home ≥ £175k to descendants → £0 tax (full £500k corridor).
- £490,000 with £300k home to children → £0 tax — matches HMRC RNRB guidance worked pattern.
- £500,000 with £100k home to descendants → taxable £75k → £30,000 tax (RNRB capped at home value).
- £650,000 with 100% NRB transfer and no RNRB → £0 tax (double NRB = £650k).
- Headline £850k NRB-only → £210,000; NRB+RNRB → £140,000; married 100% transfer → £0.
- NRB freeze through 5 April 2031 and RNRB £175k through 5 April 2030 come from the GOV.UK rates table (not the older RNRB guidance page’s CPI wording).
- All hub figures call calculateInheritanceTaxUk — same engine as /inheritance-tax-calculator/uk.
By Sammy S. · Founder · AuthorUpdated for 2026