RNRB

Question 1

How is the TNRB calculated?

Answer 1

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)

Question 2

What’s the maximum TNRB if you inherit numerous NRBs from previous spouses?

Answer 2

Max is 100% of the current NRB

Question 3

Is a TNRB claim needed when the first spouse dies?

Answer 3

No

Question 4

Is a claim required by the surviving spouse A to claim dead spouse B’s NRB?

Answer 4

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

Question 5

When does the RNRB apply

Answer 5

• died after 6.4.2016
• death included a QRI (qualifying residential interest)
• QRI closely inherited by direct Descendants

Question 6

How much is the RNRB

Answer 6

£175,000 but capped at deceased’s interest in the property

Question 7

What is RNRB taper

Answer 7

£1 for every £2 if the estate (after debt but before reliefs) is above £2m

Question 8

At what value of estate is there no RNRB?

Answer 8

• no TRNRB £2,350,000
• transferred RNRB £2,700,000

Question 9

What is a QRI

Answer 9

• residential property
• deceased occupied at some point in their ownership
• includes property they didn’t occupy due to work but intended to do so

Question 10

What does ‘closely inherited’ mean?

Answer 10

• gift under will
• intestacy
• survivorship

Question 11

Does someone with a contingent interest in a property closely inherit?

Answer 11

No. Therefore RNRB will not apply

Question 12

Who are direct descendants?

Answer 12

• children, grandchildren etc.
• Spouses of the above
• unmarried widow of the above (at d.o.d)

Question 13

Can the RNRB be transferred?

Answer 13

Yes, so max RNRB is £350,000

Question 14

What is RNRB downsizing?

Answer 14

Would have had a QRI but downsized and gifts assets to direct descendant.