Unused Nil Rate Band for mother who died in Spain

[Paul20004]

My mother died during 2012 in Spain (spanish residency; British pension). She made no gifts to anyone in the past 7 years and all her half of the assets went to her surviving spouse my father.
My father returned to the UK a year later and has been in the UK for over 11 years. He has his own house and no longer a resident in Spain but all assets here in the UK.
He now has dementia and a placement in a nursing home is required (prognosis not good).

However, upon his death can the family transfer unused nil rate band of our mother to my fathers estate?

This has baffled us and would love some advise please. Thank you!

[AGoodman]

Yes, both the NRB and RNRB should transfer, giving him a total NRB of £1m provided:

- each of them had total estates under £2m
- the value of his home is at least £350k. If not, the total RNRB is probably capped at the value of the home.

[Paul20004]

Thanks for the reply. But what is that the case and what forms would I have to complete as executor? Only reason I am raising this is whether to sell my fathers home or rent it to avoid 40% tax on the home which then becomes savings. Thanks for all your help...

[AGoodman]

Selling makes no difference. it can still be claimed. It's called downsizing relief:

https://www.gov.uk/guidance/check-if-you-can-get-an-additional-inheritance-tax-threshold