inheritance tax brain freeze!

[AGoodman]

No, your father's estate passed to your mother so was spouse exempt and did not use up his nil rate band (assuming your parents were married). It remains available in full.

I think you are confused about 2007. I don't know of any rules that prevent it. The regular transferable NRB was introduced in 2007 but that is irrelevant - its the regular (rather than additional/residential) NRB and it turns on the death of the survivor not the first to die. If you post a link it can be confirmed.

[pcplum]

Hi goodman.

I was reading this and the examples shown:

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/transferable-nil-rate-band-facts/


If this is not the case then how much NRB do I have?

325k plus 125k plus 263k?

[AGoodman]

Your mother will have £850k (£325+325+100+100) as of now if she leaves the property (or proceeds from it) to descendents. This will increase to £900k on 6 April when the RNRB increases to £125k (hers + transfer).

The transferable nil rate band is a %age of the current NRB so £325,000 is transferable. Your father did not use his so the current full amount would be transferable.

The 2007 date is referring to the death of the survivor - ie your mother who is still alive.

[pcplum]

Hi agoodman,

Thank you so much for clearing that up!

Nicely laid out for me. I've struggled to grasp this whole IHT thing which I think is far too complex by the government.

But you have cleared it up for me. Thanks again my friend! Really appreciate it!