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Where Taxpayers and Advisers Meet

Date of valuation of property for RNRB

Cloisters
Posts: 27
Joined: Fri Oct 14, 2016 5:37 pm

Date of valuation of property for RNRB

Postby Cloisters » Sat May 04, 2019 9:29 am

I own a property just in excess of the RNRB allowances, but have moved out and am renting it. I have significantly downsized well below the RBRB allowances.

If I continue to rent the original property until I die, is the value of the property for RNRB purposes calculated at the point I moved out or the value on sale? (If I had sold it and ensured records were kept it would protect the RNRB even though I moved to a cheaper property as I understand it).

The reason behind my question is that with fiscal drag , over a period of maybe 20 or even 30 years, the value of the property could easily fall below what might then be a much higher RNRB (forever hopeful) and therefore the incentive to keep the property if I can afford to, is greater.

maths
Posts: 7528
Joined: Wed Aug 06, 2008 3:25 pm

Re: Date of valuation of property for RNRB

Postby maths » Sat May 04, 2019 9:16 pm

Property valuation is that at the date of death irrespective of whether the downsizing provisions apply or not.

Cloisters
Posts: 27
Joined: Fri Oct 14, 2016 5:37 pm

Re: Date of valuation of property for RNRB

Postby Cloisters » Sat May 04, 2019 9:20 pm

Thank you.

maths
Posts: 7528
Joined: Wed Aug 06, 2008 3:25 pm

Re: Date of valuation of property for RNRB

Postby maths » Sun May 05, 2019 11:13 am

Just for clarification. If residence owned at date of death then for RNRB purposes the property value is that at date of death.

If Property X is owned and sold prior to death and at time of sale it is valued at 175,000 and a smaller property Y is purchased which at time if death is valued at 100,000 then an RNRB of 175,000 (if death in 20/21) is available if 75,000 of deceased's assets is left to lineal descendant plus the 100,000 property.


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