The Main Residence Threshold Escalation preference allows advisers escalate the phase-out threshold for the Residential Nil Rate Band (RNRB).
The additional Residential Nil Rate Band is:
£100,000 in 2017/2018
£125,000 in 2018/2019
£150,000 in 2019/2020
£175,000 in 2020/2021 to 2025/2026
£125,000 in 2018/2019
£150,000 in 2019/2020
£175,000 in 2020/2021 to 2025/2026
The software is coded with these values. The RNRB will then increase in line with Consumer Prices Index (CPI) from 2026 onwards. CPI is another of the software's preferences.
Any unused nil-rate band will be able to be transferred to a surviving spouse or civil partner.
There will be a tapered phase-out of the additional nil-rate band for estates with a net value of more than £2 million. The RNRB will be phased out at a rate of £1 for every £2 over this threshold. It is this threshold of £2 million that is escalated at the rate set by the Main Residence Threshold Escalation preference.
Plan Preferences vs. System Preferences
Changes to this setting on the mirror Default Inflation / Growth Rates panel in System Preferences, on the left side of the screen, will be used only going forward, as you create new client cases. System Preferences are used as a template only for new client cases. Changes to System Preferences will not retroactively affect your existing client cases.
If you want to change this preference in any existing client cases, you will need to open and edit them individually, in each case's Plan Preferences.
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