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Where Taxpayers and Advisers Meet

Passing on nil rate band to spouse

gfod49
Posts:7
Joined:Mon Jan 16, 2017 12:40 pm
Passing on nil rate band to spouse

Postby gfod49 » Tue Sep 19, 2023 2:41 pm

My wife and I have mirror wills and are joint owners of our house which is seems likely to be worth in excess of £1000000. We have cash assets with my wife assets valued above the £350,000 nil rate band but mine below that figure. My concern is should I die first as I do not have sufficient assets to met the nil rate band can some of my half ownership of the house be taken into account when passing my share of the nil rate band to her.

pawncob
Posts:5083
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Passing on nil rate band to spouse

Postby pawncob » Tue Sep 19, 2023 7:23 pm

All assets passed to your wife are free of IHT (and CGT).
She will get the whole of your Nil Rate Band.
With a pinch of salt take what I say, but don't exceed your RDA

gfod49
Posts:7
Joined:Mon Jan 16, 2017 12:40 pm

Re: Passing on nil rate band to spouse

Postby gfod49 » Wed Sep 20, 2023 8:39 am

Thanks I should have realised that. One further question if we wish to gift large sums to our sons now in the hope we live 7 years to avoid IHT would it be safer we ensure the payments are split between us ? Assuming the gifts in total exceed the £325000, say £200000 from each of us.

AGoodman
Posts:1723
Joined:Fri May 16, 2014 3:47 pm

Re: Passing on nil rate band to spouse

Postby AGoodman » Wed Sep 20, 2023 9:35 am

That's not really a tax question, just one of risk. All things being equal, it may be sensible. If you think one of you might have a better life expectancy then it might be better to bias the gift in their favour.

In any case, you would want to keep the individual gifts below £325k so that if somebody bad did happen, at least there would not be any tax on the first death.

gfod49
Posts:7
Joined:Mon Jan 16, 2017 12:40 pm

Re: Passing on nil rate band to spouse

Postby gfod49 » Wed Sep 20, 2023 8:09 pm

That was my thought appreciate the comments.


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