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

Residence Nil Rate Band

Kevinm
Posts:12
Joined:Wed Aug 06, 2008 3:35 pm
Residence Nil Rate Band

Postby Kevinm » Mon Dec 04, 2023 9:17 pm

Hi
I had hoped last week Mr Hunt might have saved me needing to ask this question !
As I understand for estates over £2m the extra £175,000 nil rate band starts to be lost.
Looks like for a married couple this is £175,000 each & it is carried forward to 2nd death provided property over £350,000 left to children or grandchildren .
Assuming I have this right my question is it £2m each person before loss kicks in or just £2m total across both estates.
If £2m total when is that £2m measured ie at 1st death or 2nd ?
Thanks for any clarification.

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

Re: Residence Nil Rate Band

Postby AGoodman » Tue Dec 05, 2023 11:36 am

The test applies at both deaths. for example, if each spouse has assets of £1.5m:

- the RNRB is available at the first death but would only be used if the first to die left a legacy to descendants
- neither RNRB will be available on the second death as the survivor's estate will be £3m and way over the £2m threshold.

Essentially, if the survivor's estate is more than £2m, they need to make lifetime gifts to get their estate down before they die as well. Even gifts made the day before they died would help if it gets them below the threshold as only assets held at death are counted towards the £2m.

Kevinm
Posts:12
Joined:Wed Aug 06, 2008 3:35 pm

Re: Residence Nil Rate Band

Postby Kevinm » Wed Dec 06, 2023 3:21 pm

Thank you A Goodman very helpful


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