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Where Taxpayers and Advisers Meet

RNRB can I claim ?

piper777
Posts:42
Joined:Mon Jan 28, 2013 4:53 pm
RNRB can I claim ?

Postby piper777 » Tue Apr 26, 2022 8:18 pm

some advise please .. would be most grateful....

trying to fill in iht forms, Can i still claim RNRB allowance with the following :

Father recently died . sold his house 4 years ago for 560K and gifted 450K away of proceeds. the remaining 110 k is part of his estate going to descendants. is there a minimum amount percentage wise that has to be left to descendants to qualify for this relief ??

many thanks if u can help --- minefield of forms to fill!

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

Re: RNRB can I claim ?

Postby AGoodman » Wed Apr 27, 2022 9:39 am

The main criteria is that the proceeds have to pass to the descendants via the estate therefore £110k of relief is available.

If he has other funds in his estate passing to descendants then it may also be possible to claim for that value but that would take a deeper reading of the (fairly horrific) legislation

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

Re: RNRB can I claim ?

Postby maths » Wed Apr 27, 2022 10:23 am

I assume father died without owning a residence. If so then he would need to leave assets from his estate on death to his children (including step) and/or grandchildren (including step) of £175,000 to be able to claim the maximum £175,000 of RNRB.If there is any transfer of his wife's RNRB (eg she died before him having not used her RNRB) then maximum RNRB would be 350k.

If 110k was left in this manner this would be the RNRB available.

piper777
Posts:42
Joined:Mon Jan 28, 2013 4:53 pm

Re: RNRB can I claim ?

Postby piper777 » Wed Apr 27, 2022 11:55 am

thank you both for your replies

further to this ---yes indeed there is further cash being left will this not qualify for the RNRB then? or is it only the residue of sale of house proceeds minus the gifted money ? the money that was distributed prior to death was to descendants also. my mother also did not make use of the RNRB as passed all to father.

any help much appreciated

piper777
Posts:42
Joined:Mon Jan 28, 2013 4:53 pm

Re: RNRB can I claim ?

Postby piper777 » Wed Apr 27, 2022 12:05 pm

sorry to add further to be clear --there is apprx 290K now left in bank accounts that includes the money left over from sale of house

Thank you very very much !

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

Re: RNRB can I claim ?

Postby maths » Wed Apr 27, 2022 12:08 pm

further to this ---yes indeed there is further cash being left will this not qualify for the RNRB then?

Yes if left too lineal descendants

or is it only the residue of sale of house proceeds minus the gifted money ?

No

the money that was distributed prior to death was to descendants also.

Irrelevant

my mother also did not make use of the RNRB as passed all to father.

This inflates max RNRB from 325k to 650k

piper777
Posts:42
Joined:Mon Jan 28, 2013 4:53 pm

Re: RNRB can I claim ?

Postby piper777 » Wed Apr 27, 2022 12:19 pm

thank you Maths

so the RNRB left to lineal descendants covers all money left in the estate providing some of it is from proceeds from house ...and should be covered in this situation?

sorry if i am being dense !

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

Re: RNRB can I claim ?

Postby maths » Wed Apr 27, 2022 4:22 pm

No.

As father died not owning a residence at his date of death then for his estate to be able to utilise his RNRB (plus any transfer from his wife) all that is necessary is that assets (not just cash) within his estate at death amounting to £175k (or £350k) are left to lineal descendants. The assets don't need to in any way be related to his earlier house sale.

piper777
Posts:42
Joined:Mon Jan 28, 2013 4:53 pm

Re: RNRB can I claim ?

Postby piper777 » Wed Apr 27, 2022 5:16 pm

thank you so much Maths ! answers all my worries !!


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