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Where Taxpayers and Advisers Meet

RNRB with GWR?

Marcalo
Posts:2
Joined:Wed Oct 09, 2024 8:38 pm
RNRB with GWR?

Postby Marcalo » Wed Oct 09, 2024 9:11 pm

Trying to sort out IHT for our family.
A property was gifted to myself a couple of years ago.
Things carried on normal for the person making the gift enjoying living in the property, paying bills, etc.
No rent, or money or upkeep, etc. were exchanged, or paid for by me.
So quite clearly imo, it has been a Gift with Reservation.

However, I cannot find a clear answer if RNRB can be added to the IHT threshold.
If RNRB can be applied, is that based on the current value (property is worth around £150k)? Or a flat rate of £175k?
So increasing IHT from £325k + £150 to £475k & not the maximum £500k.


Is there anything I may have missed over GWR? Or any hidden tax I am not currently aware about? CGT (I thought this had been paid at date of transfer, but not sure as it was all handled by a law firm at the time) or some sort of income tax as no rent was collected.

Thanks :)

maths
Posts:8529
Joined:Wed Aug 06, 2008 3:25 pm

Re: RNRB with GWR?

Postby maths » Thu Oct 10, 2024 6:26 pm

The gift of the residential property will constitute a gift with reservation on the part of the donor.

RNRB requires, inter alia, that the property on death is "closely inherited"; in this case, the person inheriting (ie you) must be a lineal descendant of the donor.

Marcalo
Posts:2
Joined:Wed Oct 09, 2024 8:38 pm

Re: RNRB with GWR?

Postby Marcalo » Fri Oct 11, 2024 7:44 pm

Ahh, thanks.
Yes direct descendent. So I would fall in the RNRB rules.
Just wasnt sure if the property being transferred before death would rule it our not.


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