The new Inheritance Tax main residence nil-rate band (RNRB) comes into effect from 6 April 2017. The new RNRB is in addition to the existing £325,000 Inheritance Tax Nil-Rate Band (NRB) threshold.The initial RNRB will amount to £100,000 for 2017-18, increasing to £125,000 in 2018-19, £150,000 in 2019-20 and £175,000 in 2020-21. The RNRB is a new transferable allowance for married couples and civil partners (per person) when their main residence is passed down to a direct descendent such as children or grandchildren after their death. Any unused portion of the RNRB can be transferred to a surviving spouse or partner in a similar way to the existing NRB.The allowance will be available to the deceased person’s children or grandchildren. HMRC’s guidance explains how the RNRB will apply in most circumstances and includes 18 case studies with workings on some common scenarios. The legislative provisions have been drafted to ensure that an estate will be entitled to the RNRB where an individual downsized to a smaller property on or after 8 July 2015. This is the date the measure was first announced.By 2020-21, parents will be able to pass on property worth up to £1 million free of Inheritance Tax to their direct descendants. However, there will be a tapered withdrawal of the RNRB for estates with a net value of more than £2m. This will be at a withdrawal rate of £1 for every £2 over this threshold.