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Where Taxpayers and Advisers Meet

How to enter RNRB on IHT400?

davidxt
Posts:26
Joined:Mon Feb 23, 2015 4:00 pm
How to enter RNRB on IHT400?

Postby davidxt » Sun Apr 17, 2022 10:41 am

I am completing an IHT400 for an estate where I wish to claim RNRB plus transferred RNRB.

The IHT400 Notes say to fill in schedules 435 and 436. I have done this, and get a value of the total that I am claiming.

But then the IHT400 Notes are silent as to what to do with the result. Searching the PDF brings no further mention of RNRB or 'residence nil rate band'. If I do not find a place to insert my claim on IHT400, it seems to me that IHT400 box 96, Total net estate after exemptions and reliefs, cannot be correct.

I assume that it goes into box 92 or 93, and I think it must be 93 because it relates to the house which is a column B item. But I am hesitant as the instructions for this box say to exclude 'transferable nrb here' and I am dealing with another sort of nrb so perhaps all flavours of NRB must not be put here. But if not here then where?

Can anyone help please?

AGoodman
Posts:1449
Joined:Fri May 16, 2014 3:47 pm

Re: How to enter RNRB on IHT400?

Postby AGoodman » Tue Apr 19, 2022 12:26 pm

The total RNRB and TRNRB goes in Box 111. If you cannot use that simple version of the IHT calculation, you include them in Box 7 of form "IHT400 Calculation"

davidxt
Posts:26
Joined:Mon Feb 23, 2015 4:00 pm

Re: How to enter RNRB on IHT400?

Postby davidxt » Tue Apr 19, 2022 4:46 pm

Thanks for your help.

I cannot use either the simple calculation or the 'IHT400calculation' form because I am claiming the lower IHT rate 36%. So I go to IHT430.

But unlike 'IHT400calculation', this one makes no mention of RNRB. I have no NRB available as it was absorbed by chargeable lifetime gifts. So should I put the RNRB into IHT435 Box 11 and leave IHT435 Box 26 as £0, (which seems to say that I also need to put RNRB with similar reliefs onto the IHT400 box92/3) - or put RNRB into IHT435 Box 26. even though it is no NRB as such?

AGoodman
Posts:1449
Joined:Fri May 16, 2014 3:47 pm

Re: How to enter RNRB on IHT400?

Postby AGoodman » Wed Apr 20, 2022 10:54 am

I see your problem. I'm afraid I don't know the answer. I suspect the forms are deficient but best give HMRC a call.

davidxt
Posts:26
Joined:Mon Feb 23, 2015 4:00 pm

Re: How to enter RNRB on IHT400?

Postby davidxt » Wed Apr 20, 2022 1:01 pm

I called HMRC and was told that RNRB cannot be claimed if an application is being made to the reduced rate because 10% is being donated to charity. This was a bit of a blow for us.

AGoodman
Posts:1449
Joined:Fri May 16, 2014 3:47 pm

Re: How to enter RNRB on IHT400?

Postby AGoodman » Thu Apr 21, 2022 10:41 am

I'm not 100% certain but this is the first time I've ever heard of this and I'm doubtful.

It's worth paying somebody to look it up properly or, failing that, call HMRC again and ask for the statutory authority (i.e. the provision of the Inheritance Tax Act which imposes this condition/restriction).

davidxt
Posts:26
Joined:Mon Feb 23, 2015 4:00 pm

Re: How to enter RNRB on IHT400?

Postby davidxt » Thu Apr 21, 2022 12:28 pm

Thank you for your help - much appreciated.

I have searched online extensively and cannot find reference to it. I do have a solicitor helping me and will indeed ask him - I was just seeking to fill in as much of the forms as I could before passing to him, to save time and also to understand how it all works.

davidxt
Posts:26
Joined:Mon Feb 23, 2015 4:00 pm

Re: How to enter RNRB on IHT400?

Postby davidxt » Fri Apr 22, 2022 9:53 am

Well for the benefit of anyone afterwards:
I called HMRC again and asked if RNRB and reduced rate for 10% charity donation were mutually exclusive, and this advisor said they were not.

So I then asked him my original question: where to put it on IHT430? He could not really find a place and ended up with the solution of putting it in Box 26 with a written note on how the value was arrived at (NRB + RNRB). It does seem to be an unhelpful deficiency in the form since on the others RNRB and NRB are identified separately.

maths
Posts:8447
Joined:Wed Aug 06, 2008 3:25 pm

Re: How to enter RNRB on IHT400?

Postby maths » Wed Apr 27, 2022 4:49 pm

The RNRB (and any brought forward allowance) cannot be used to reduce the estate when seeking to ascertain whether a donation to charity is greater than 10% of the baseline amount of the estate.

[IHTA 1984 Sch 1A para 5].


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