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🇬🇧£850k · RNRB vs XFER

NRB + RNRB vs Married 100% 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

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): NRB + residence nil-rate #2 · Married couple (full transfer) #1 among 3 scenarios.
  • Total nil-rate allowance on £850k: NRB + RNRB £500,000 vs Married 100% £1,000,000.
  • 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 NRB + RNRB vs Married 100%

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: NRB + RNRB £0 vs Married 100% £0 (gap £0).

At £850k: NRB + RNRB £140,000 vs Married 100% £0 (gap £140,000).

At £1.5m: NRB + RNRB £400,000 vs Married 100% £200,000 (gap £200,000).

RNRB taper above £2m

RNRB reduces by £1 for every £2 of estate above £2,000,000. At £2.5m the NRB + RNRB/Married 100% 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.

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

GOV.UK — How Inheritance Tax works →

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

GOV.UK — Passing on a home →

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

GOV.UK — Residence nil-rate band guidance →

Estate ladder gaps

EstateNRB + RNRBMarried 100%Gap
£400,000£0£0£0
£500,000£0£0£0
£650,000£60,000£0£60,000
£850,000£140,000£0£140,000
£1,000,000£200,000£0£200,000
£1,500,000£400,000£200,000£200,000
£2,500,000£870,000£700,000£170,000

Allowance layers

NRB + RNRB allowances

On £850k: total nil-rate £500,000; RNRB applied £175,000; tax £140,000.

Married 100% allowances

On £850k: total nil-rate £1,000,000; RNRB applied £350,000; tax £0.

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.

NRB + residence nil-rate: NRB transfer 0%, RNRB transfer 0%, home to descendants yes (capped at £400k). Married couple (full transfer): NRB transfer 100%, RNRB transfer 100%, 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

NRB only vs NRB + RNRBNRB only vs Married 100%All scenariosCalculator

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