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Where Taxpayers and Advisers Meet

Residence Nil Rate Band

Umar
Posts:67
Joined:Wed Aug 06, 2008 3:36 pm
Residence Nil Rate Band

Postby Umar » Wed Aug 08, 2018 8:06 pm

Hi

If my father passed away this year, and the family home was in his wife's name, then does the £125k unused Residence Nil Rate Band pass to his wife?

So if she had a home worth £250k and died this year also, the home would not be taxable for IHT?

And then she still has her £325k Nil Rate Band (plus any unused from my dad)?

Is that right?

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Residence Nil Rate Band

Postby maths » Thu Aug 09, 2018 1:55 pm

If my father passed away this year, and the family home was in his wife's name, then does the £125k unused Residence Nil Rate Band pass to his wife?
Yes.

The RNRB is not set against the value of a specific property; it is simply set against the aggregate estate. It is also set against the estate before any nil rate band or transferable nil rate band.

If mother's estate only comprised the property worth 250k then she would set against her estate an available RNRB of 250k. Her nil rate band and any transferred nil rate band would then effectively be unusable but if she had additional estate property then the nil rate bands could be utilised.


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