ACCA Applied Skills · Taxation (UK) · The use of exemptions in deferring and minimising inheritance tax liabilities
Which of the following is the maximum residence nil rate band available on death in the tax year per the tax tables provided for the TX-UK exam (Finance Act 2025)?
The residence nil rate band given in the TX-UK tax tables for Finance Act 2025 is £175,000. It is separate from, and additional to, the £325,000 nil rate band, so together they can total £500,000 where the conditions are met.
- A£175,000Correct
- B£325,000
- C£500,000
- D£150,000
Explanation
The tax tables give a residence nil rate band of £175,000 and a nil rate band of £325,000. £500,000 is the two combined, which is only available when a residence is left to direct descendants. £150,000 is not a figure in the tables.
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