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Where Taxpayers and Advisers Meet

Best time to use Residence Nil Rate Band when estate passes to the Spouse

Bazman
Posts:4
Joined:Tue Jan 18, 2022 10:38 pm
Best time to use Residence Nil Rate Band when estate passes to the Spouse

Postby Bazman » Sun Jan 30, 2022 6:46 pm

Hi there,

Is there any benefit to using the Residence Nil Rate Band now, when the entire estate passes to the Spouse and so there is no IHT liability?

Does the fact that the house was jointly owned and has a survivorship bias in the deeds make any difference to the advice given?

Tnx

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

Re: Best time to use Residence Nil Rate Band when estate passes to the Spouse

Postby AGoodman » Mon Jan 31, 2022 3:06 pm

The main reason (that I can think of) would be if you had property that you thought would grow in value significantly faster than the nil rate band. This may not be difficult given it has been frozen for the last 13 years.

Another would be if you are concerned that the survivor's estate will not get the full (or any) RNRB because it will exceed the £2m threshold.

You would balance that against the complexity of any solution, taking into account the overall value of the estate.


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