RNRB Flashcards
How is the TNRB calculated?
As a percentage of the deceased’s unused NRB which is then applied to the current NRB rate.
(this mean that if the NRB increases, the surviving spouse will get an uplift in the TNRB)
What’s the maximum TNRB if you inherit numerous NRBs from previous spouses?
Max is 100% of the current NRB
Is a TNRB claim needed when the first spouse dies?
No
Is a claim required by the surviving spouse A to claim dead spouse B’s NRB?
Yes.
- Must be made within 2 years of the end of the month of B’s death (or 3 months of the PRs acting if later).
- if they fail to do so, any other beneficiary paying IHT may claim.
- separate claim needed for each TNRB
- can also claim for previous spouses if needed
When does the RNRB apply
- died after 6.4.2016
- death included a QRI (qualifying residential interest)
- QRI closely inherited by direct Descendants
How much is the RNRB
£175,000 but capped at deceased’s interest in the property
What is RNRB taper
£1 for every £2 if the estate (after debt but before reliefs) is above £2m
At what value of estate is there no RNRB?
- no TRNRB £2,350,000
- transferred RNRB £2,700,000
What is a QRI
- residential property
- deceased occupied at some point in their ownership
- includes property they didn’t occupy due to work but intended to do so
What does ‘closely inherited’ mean?
- gift under will
- intestacy
- survivorship
Does someone with a contingent interest in a property closely inherit?
No. Therefore RNRB will not apply
Who are direct descendants?
- children, grandchildren etc.
- Spouses of the above
- unmarried widow of the above (at d.o.d)
Can the RNRB be transferred?
Yes, so max RNRB is £350,000
What is RNRB downsizing?
Would have had a QRI but downsized and gifts assets to direct descendant.
