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Where Taxpayers and Advisers Meet

Transferring residential nil rate band

riccardob
Posts:105
Joined:Sun May 29, 2011 10:02 am
Transferring residential nil rate band

Postby riccardob » Wed Jan 06, 2021 10:59 am

Hello,

I have a query on the transfer of residential nil rate band;

If spouse A owns a property solely and dies and leaves everything to spouse B. Spouse B as already has a property in his own name

Once spouse B dies can their son who is also the executor claim the transfer of spouse A rnrb and also claim the rnrb for spouse B? Or would this fail has spouse A did not leave the property to children.

Thanks

Lee Young
Posts:2694
Joined:Wed Aug 06, 2008 3:26 pm
Contact:

Re: Transferring residential nil rate band

Postby Lee Young » Wed Jan 06, 2021 11:35 am

On spouse B's death the availablility of athr RNRB will depend on his owning a propoerty he once lived in during his life, and his leaving that prpoerty to his lineal descendants. Assuming his estate is not above the taper relief threshhold then the claim for the relief will be successful. A claim for the carried forward RNRB will also work assuming the deceased's spouse's estate was not above the threshhold.
Lee Young
Solicitor, Chartered Tax Adviser and Trust and Estate Practitioner


Partner, Frettens LLP
lyoung@frettens.co.uk
01202 491701

riccardob
Posts:105
Joined:Sun May 29, 2011 10:02 am

Re: Transferring residential nil rate band

Postby riccardob » Wed Jan 06, 2021 11:46 am

On spouse B's death the availablility of athr RNRB will depend on his owning a propoerty he once lived in during his life, and his leaving that prpoerty to his lineal descendants. Assuming his estate is not above the taper relief threshhold then the claim for the relief will be successful. A claim for the carried forward RNRB will also work assuming the deceased's spouse's estate was not above the threshhold.
so it does not matter that Spouse A did not leave the property immediately to a child but only to Spouse B?

Also I did not mention that upon death Spouse B would own two properties, his own and the one inherited by Spouse A. I guess this detail does not affect eligibility to the transfer of Spouse A RNRB.

AGoodman
Posts:1207
Joined:Fri May 16, 2014 3:47 pm

Re: Transferring residential nil rate band

Postby AGoodman » Thu Jan 07, 2021 3:54 pm

No, if that were the case, it could never be transferred.

Having two properties is fine but you can only claim the RNRB in respect of a property that he has lived in.


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