IHTM46024 - Calculating the RNRB: terms used: the 'default allowance'

The legislation refers to a person鈥檚 鈥榙efault allowance鈥�. This is the maximum potential value of the residence nil rate band for that estate before applying the taper threshold (IHTM46023). It is the total of:

(i) the residential enhancement at the person鈥檚 death (IHTM46022), and

(ii) the person鈥檚 鈥榖rought forward allowance鈥� (IHTM46040).

However, if the value of the estate exceeds the taper threshold聽the 鈥榙efault allowance鈥� is reduced to become the 鈥榓djusted allowance鈥� 聽(IHTM46025).