This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Widow’s IHT threshold

martin11443
Posts:2
Joined:Wed Aug 06, 2008 3:58 pm
Widow’s IHT threshold

Postby martin11443 » Sun Jan 16, 2022 10:08 am

A widow’s husband died in 1991 leaving his entire estate to her. Their property was jointly owned and is now worth £250k.

Taken together with investments the value of the estate may exceed the IHT threshold.

She will leave her estate to her two children only.

Will the IHT threshold be £825k or £1M.

Many thanks.

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

Re: Widow’s IHT threshold

Postby maths » Sun Jan 16, 2022 10:49 pm

Widow should have her own 325k nil rate band plus 175k er her RNRB. She will also be entitled to a transfer from her husband's death of 325k and 175k.

So total "allowances" to widow £1m.

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Widow’s IHT threshold

Postby AGoodman » Mon Jan 17, 2022 12:05 pm

maths - the property is only £250k so she cannot use all the RNRB.

I think her threshold would therefore be £650+£250 = £900k

Mike7
Posts:1
Joined:Mon Apr 04, 2022 3:19 pm

Re: Widow’s IHT threshold

Postby Mike7 » Mon Apr 04, 2022 3:26 pm

Postby maths »Sun Jan 16, 2022 10:49 pm

']'Widow should have her own 325k nil rate band plus 175k er her RNRB. She will also be entitled to a transfer from her husband's death of 325k and 175k.

Wait up - -what is this?''

The husband died in 2009 and the transfer of nil rate band only occurred from 2007?

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

Re: Widow’s IHT threshold

Postby maths » Mon Apr 04, 2022 6:33 pm

Husband died in 1991 not 2009. The TNRB applied wrt surviving spouses who died on or after 9 October 2007 (as is the case here).

Re AG's comment, he is correct that although as I said the surviving spouse's combined reliefs aggregate to £1m, the RNRB plus TRNRB of £350k is in fact limited to 250k (the value of the house) left to children.


Return to “Inheritance Tax, IHT, Trusts & Estates, Capital Taxes”