I am just a layperson
When I last looked at the RNRB, it had just come into force, and I found it hard to follow at the time the HMRC gave many different example scenarios...and I end up even more confused.
As time has passed since RNRB came into force it looks like there is now a better understanding.
The RNRB applies to what is referred to as a "qualifying residential interest" at the time of death.
At the time of death
However, I believe there is what I am going to call the downsizing anomaly.
If aggregate does exceed £325k then in fact the RNRB (currently £175k) is in any event offset BEFORE the NRB and thus may be of use.
Thank you I did not know this was the order for RNRB and then NRB if the estate includes their home.
I misunderstood and thought the NRB was used first and then if the deceased owned a share in their home and their share of the home was worth more than £325k then the RNRB could be used.
To clarify, the deceased whose estate includes a home (and they have lineal descendants) can use the RNRB first in the IHT calculation and then the NRB?
It appears IHT taxation is a bit fairer than I originally thought, as I thought incorrect only deceased with a home worth more than NRB, could make use of the RNRB.
However still, the deceased without a home but an estate above the NRB would not benefit from the RNRB at all.
And deceased with no lineal descendants would also not benefit from the RNRB at all.
Is, the RNRB available if a property passes into an NRB Discretionary trust which includes lineal descendant beneficiaries?
However, if the home was held as tenants in common the deceased's share must pass (ie inherited) to one our more lineal descendants to qualify for the RNRB.
To clarify a share in a property held as tenants in common cannot pass to the spouse and then the surviving spouse would have the benefit of two RNRB on their death?
However, a share in a property held as joint tenants would pass to the spouse and then the surviving spouse would have two RNRB available?