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

The legislation refers to a person’s ‘default allowance’. 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’s death (IHTM46022), and

(ii) the person’s ‘brought forward allowance’ (IHTM46040).

However, if the value of the estate exceeds the taper threshold the ‘default allowance’ is reduced to become the ‘adjusted allowance’  (IHTM46025).