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Where Taxpayers and Advisers Meet

Passing on NRB + Gift Threshold

trnd777
Posts:5
Joined:Thu Oct 12, 2017 10:09 am
Passing on NRB + Gift Threshold

Postby trnd777 » Wed Nov 24, 2021 11:30 am

My father died in recent past...

Does his NRB also apply to gifts from my mother if she gives over £325,000 or is this a hard limit @ £325,000 that cannot benefit from unused roll-over from my father's estate ?

AGoodman
Posts:1312
Joined:Fri May 16, 2014 3:47 pm

Re: Passing on NRB + Gift Threshold

Postby AGoodman » Wed Nov 24, 2021 12:11 pm

The "regular" NRB can be transferred to a spouse and set against the spouse's estate - both assets owned at death and gifts made in the final seven years of their life.

The residential nil rate band can also be transferred but (for the most part) only set against assets owned at the widow(er)'s death.

If you are contemplating gifts of that size, it is well worth getting proper advice as, people often misunderstand how the NRB and exemptions work. Anything given over £325k will still be a PET.

trnd777
Posts:5
Joined:Thu Oct 12, 2017 10:09 am

Re: Passing on NRB + Gift Threshold

Postby trnd777 » Wed Nov 24, 2021 12:31 pm

Thank you, yes there is around £40k over that gifts total but I'm still hazy on whether by it becoming a gift it falls out of the NRB roll-over from my dad

That is my worry, by reclassifying this excess as a gift it would somehow attract 40% tax if my mother passed this year for example..and that if she had just
held it in her name it would not attract anthing as her total NRB assets with my dad's roll-over as it stands are below IHT combined threshold.

Between gifts up to £25k and an excess with her at present she would not get any IHT against estate as far as I know.

trnd777
Posts:5
Joined:Thu Oct 12, 2017 10:09 am

Re: Passing on NRB + Gift Threshold

Postby trnd777 » Wed Nov 24, 2021 12:47 pm

Yes, thanks you did answer that...text is so super small on this forum !

"The "regular" NRB can be transferred to a spouse and set against the spouse's estate - both assets owned at death and gifts made in the final seven years of their life."


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