The Legacy of Residence Nil Rate Band is a tax allowance that allows an individual to pass on their home to their direct descendants without incurring inheritance tax. This is in addition to the standard inheritance tax allowance, which currently stands at £325,000 per individual. The Residence Nil Rate Band (RNRB) was introduced in 2017, and it provides an additional tax-free allowance for the value of a family home that is passed on to a direct descendant.

The current RNRB for the tax year 2022/23 is £175,000 per individual, meaning that a married couple or civil partners could potentially have a combined tax-free allowance of up to £1 million when passing on their home to their children or grandchildren. The RNRB is also transferable between spouses and civil partners, meaning that any unused allowance from one partner can be added to the other partner's allowance.

To qualify for the RNRB, the property must have been the main residence of the deceased at some point during their lifetime and must be left to their direct descendants, which includes children, grandchildren, and other lineal descendants. The RNRB is gradually reduced for estates worth more than £2 million and is completely lost for estates worth over £2.35 million.