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Where Taxpayers and Advisers Meet

Transfer of NRB/RNRB Allowance

zaxtab
Posts:25
Joined:Thu Jul 09, 2020 9:08 pm
Transfer of NRB/RNRB Allowance

Postby zaxtab » Wed Mar 31, 2021 2:35 pm

Is there any circumstances whereby a deceased NRB+RNRB would not automatically be transferred to the surviving spouse?,and/or is there a need for a written instruction to ensure this happens?...Does a property owned as Tenants in Common have an influence on this?

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

Re: Transfer of NRB/RNRB Allowance

Postby maths » Wed Mar 31, 2021 3:11 pm

Any unused element of the NRB and the RNRB on the death of a spouse may be transferred to the other surviving spouse on their death. To do so requires appropriate claims to be lodged by the PRs of surviving spouse on their death. In the absence of lodging a claim no transfers are possible.

If the first spouse to die uses up his/her NRB and RNRB then, of course, there is nothing to transfer.

Where the spouses own the property as joint beneficial tenants, on the death of one of them their interest automatically passes to the surviving spouse. In this case the RNRB of the first spouse is unused and thus transferable. Any unused element of the NRB is again transferable.

Where the spouses own the property as beneficial tenants in common, on the death of one of them their interest does not automatically pass to the surviving spouse unless this is provided for in the deceased spouse's will. In this case the RNRB of the first spouse may or may not unused and thus potentially transferable. Any unused element of the NRB is again transferable.

zaxtab
Posts:25
Joined:Thu Jul 09, 2020 9:08 pm

Re: Transfer of NRB/RNRB Allowance

Postby zaxtab » Thu Apr 01, 2021 10:56 am

If a mirror Will instructs half share of property (T-in-C) and residue of estate to be held in trust,albeit the spouse being a trustee and the trustees may loan the whole estate back to spouse how does this play out in transfer of Nil Rate Bands......if whole estate is loaned back to to surviving spouse?

Hope this makes sense!


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