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Where Taxpayers and Advisers Meet

Questions re residential nil rate band

riccardob
Posts:112
Joined:Sun May 29, 2011 10:02 am
Questions re residential nil rate band

Postby riccardob » Tue Sep 07, 2021 7:12 pm

Hello,

If spouse a dies and leaves property x to spouse b but said spouse b then gives property to son
via dov. Spouse b has a home abroad property y in his name but has lived in property x with wife and then carries on living
in said property x rent free from son.
My questions is, once spouse b dies can he claim residential nil rate band on his property y abroad even though he is not living in it
and it was a second home?

Residential nil rate band would also be claimed on spouse a property.

Thanks

riccardob
Posts:112
Joined:Sun May 29, 2011 10:02 am

Re: Questions re residential nil rate band

Postby riccardob » Tue Sep 07, 2021 7:33 pm

Forgot to mention an important point, spouse b sells his property abroad, can executors still claim his rnrb even if spouse b dies years later?

maths
Posts:8284
Joined:Wed Aug 06, 2008 3:25 pm

Re: Questions re residential nil rate band

Postby maths » Tue Sep 07, 2021 8:28 pm

A claim by the PRs of spouse b on his death re his property overseas, y, will qualify for the RNRB but only if b's interest in y was a so-called qualifying residential interest. It's not clear from the post if this would be so.

If b sold y prior to his death this would not preclude a claim for the RNRB but as stated above it would be necessary for b to constitute a residential interest.

riccardob
Posts:112
Joined:Sun May 29, 2011 10:02 am

Re: Questions re residential nil rate band

Postby riccardob » Wed Sep 08, 2021 10:48 am

re. qualifying residential interest: the property owned by spouse b was lived in from 2008 to 2010 by both spouses who then moved to the uk to live in the other property.
The property has been visited for short periods over the years.

does this qualify the property for RNRB?

maths
Posts:8284
Joined:Wed Aug 06, 2008 3:25 pm

Re: Questions re residential nil rate band

Postby maths » Wed Sep 08, 2021 2:16 pm

It is a factual determination but on balance I would say b had a qualifying residential interest in y.


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