gifts made as normal expenditure - on a regular basis, such as under a covenant - which come out of one’s income. The Finance Act 2016 provided further relief in cases where all or part of the additional band could be lost, where a person had downsized to a less valuable residence or had ceased to own a residence after 8 July 2015 (and before the person has died). This is conditional upon the deceased having left that smaller residence, or assets of equivalent value, to direct descendants. [34] These are defined as lineal descendants, spouses or civil partners of such lineal descendants, or former spouses or civil partners who have not become anyone else's spouse or civil partner. [35] Unlike transferable nil rate band (TNRB) the additional nil-rate band provided by RNRB is only applied against the estate on death. RNRB is not considered when working out the tax due on the value of chargeable lifetime transfers or failed potentially exempt transfers

Value was generally defined as "the price which the property might reasonably be expected to fetch in the open market at that time; but that price shall not be assumed to be reduced on the ground that the whole property is to be placed on the market at one and the same time." [9]

Changes over time for: Section 49

Certain gifts are exempt from tax irrespective of their size, and irrespective of whether they are made during one’s life or made under the terms of one’s will. These are: Inheritance tax is poor answer to raising revenues". Oxford Analytica Daily Brief. Oxford Analytica. 24 June 2015 . Retrieved 27 September 2023.

Agyemang, Emma; Parker, George; Stabe, Martin (26 September 2023). "The calculations behind Rishi Sunak's potential inheritance tax shake-up". Financial Times . Retrieved 27 September 2023. In a judgement following an unsuccessful appeal to a 2006 decision by the European Court of Human Rights, [29] it was held that the above does not apply to siblings living together. The crucial factor in such cases was determined to be the existence of a public undertaking, carrying with it a body of rights and obligations of a contractual nature, rather than the length or supportive nature of the relationship. [30]the general component, consisting of all other property in the estate, with the exception of that arising from gifts with reservation.