Residence Nil Rate Band Flashcards
What happens to RNRB if deceased downsized home before death?
The estate may be able to claim downsizing addition to make up for the amount of RNRB that has been lost
In relation to RNRB when is downsizing addition available?
The deceased sold, gave away or downsized their home after 7 July 2017.
The former home would have qualified for RNRB if it had been retained until death
Direct descendants inherit at least part of the estate, provided other assets are of an equivalent value to the lost RNRB
What is generally the amount of the downsizing addition in relation to RNRB?
The amount of RNRB which has been lost as a result of the disposal
What happens if the deceased new property was purchased at a lower value in relation to RNRB?
The new residence must be passed to direct descendants for the downsizing addition to apply
How do you claim RNRB including downsizing additions?
Claimed using form IHT435
Any transfer of unused RNRB from a deceased spouse is claimed using form IHT436
Where home is sold or given away there is no qualifying property, downsizing addition be claimed?
Yes if the home was sold for more than the max RNRB at the time
And
direct descendants inherit at least part of the estate equivalent to the value the lost RNRB
The full downsizing addition of £175k is available
If property is gifted how did this impact the RNRB?
If property is gifted this is a PET for IHT.
The recipient may be subject to IHT if value of property is higher than the NRBs - Normal NRB plus RNRB
On death the estate is eligible for RNRB up to maximum 100%
Claim for late spouse RNRB can also be made if applicable
