Residence Nil Rate Band - We all have a £325,000 inheritance tax nil rate band allowance. On top of this we have a private residence nil rate band £150,000 tax year 2019/2020 and £175,000 tax year 2020/2021.
Residence nil rate band is transferrable between spouses and civil partners.
The residence nil rate band only applies if you are leaving your interest in your main residential property to your direct descendants or lineage e.g. children, step-children, adopted children, foster children or grandchildren etc.
If have a Will trust with a lifetime interest in the property leaving your share of the property in a trust then this may or may not keep the residence nil rate band. If it is a discretionary trust then you lose nil rate band. If the Will trust is an absolute or bare trust entitlement for the benefit of children then you keep the residence nil rate band.
If there are no direct descendants then you have zero residence nil rate band.