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Where Taxpayers and Advisers Meet

IHT 402 and eligibilty for unused nil rate allowance

Rob H
Posts:1
Joined:Thu Aug 15, 2024 12:03 am
IHT 402 and eligibilty for unused nil rate allowance

Postby Rob H » Thu Aug 15, 2024 12:11 am

Hi all
Apologies if it’s a silly question, but I cannot find this specific question answered. She has no children.

My aunt has no direct descendants.
Her husband (my uncle) died 7 years ago.
Everything owned passed solely to her on his death in the usual way.
My aunt has just died and I have a question about inheritance tax and specifically about my uncle’s unused nil rate band.
She owns her home (approx £250k)
and has savings of approximately £450k
Her estate is roughly £700k

Can her estate use her predeceased husband’s unused nil rate band on top of her own when it comes to working out the correct IHT to pay?
She has left her entire estate to me, her niece.
Thank you in advance.

pawncob
Posts:5172
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: IHT 402 and eligibilty for unused nil rate allowance

Postby pawncob » Thu Aug 15, 2024 7:36 pm

https://www.gov.uk/guidance/inheritance-tax-transfer-of-threshold
With a pinch of salt take what I say, but don't exceed your RDA

Lee Young
Posts:2710
Joined:Wed Aug 06, 2008 3:26 pm
Contact:

Re: IHT 402 and eligibilty for unused nil rate allowance

Postby Lee Young » Thu Aug 29, 2024 5:58 pm

Yes - based on the estate of £700,000, £650,000 will be covered by the two nil rate bands (your aunt's and your uncle's transferred over) and the balance (£50,000) will be taxed at 40%, therefore £20,000 IHT payable.
Lee Young
Solicitor, Chartered Tax Adviser and Trust and Estate Practitioner


Partner, Frettens LLP
lyoung@frettens.co.uk
01202 491701


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