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  • FIRST POST
    • Jo101
    • By Jo101 10th Oct 17, 9:29 PM
    • 57Posts
    • 5Thanks
    Jo101
    Transfer of RNRB
    • #1
    • 10th Oct 17, 9:29 PM
    Transfer of RNRB 10th Oct 17 at 9:29 PM
    Sorry, I have been asking you kind people quite a few questions recently. My latest one is this:-

    My parents owned their home jointly (tenants in common). When my mother died 5 years ago she left her half to me meaning father and myself now own property jointly. When my father dies and I inherit his 50% of the property (so I will then own 100% of the property) will I be able to use his RNRB of £100,000 giving him a total NRB of £425,000. Additionally, will I also be able to add on my deceased mothers RNRB of £100,000 giving my father's estate a total NRB of £525,000?

    My mother had already used her NRB of £325,000 so there will be none of that to transfer to my father's NRB.

    Hope that makes sense. Thanks.
    Last edited by Jo101; 10-10-2017 at 9:32 PM.
Page 1
    • Keep pedalling
    • By Keep pedalling 10th Oct 17, 9:36 PM
    • 3,750 Posts
    • 4,016 Thanks
    Keep pedalling
    • #2
    • 10th Oct 17, 9:36 PM
    • #2
    • 10th Oct 17, 9:36 PM
    Yes, you will be able to do that. If your half of the property was worth less than £325,000 at the time of your mother's death then you will also be able to transfer part of her main nil rate band as well.
    • Jo101
    • By Jo101 10th Oct 17, 9:51 PM
    • 57 Posts
    • 5 Thanks
    Jo101
    • #3
    • 10th Oct 17, 9:51 PM
    • #3
    • 10th Oct 17, 9:51 PM
    Thanks for your reply keep pedalling.

    I think the total value of the property was around £400,000 at the time of my mother's death. My half of the property would have been £200,000 at that time (2012). So does that mean I would be able to transfer £125,000 of her NRB also, giving my father a total NRB of £650,000?

    Thank you.
    • getmore4less
    • By getmore4less 10th Oct 17, 9:59 PM
    • 29,996 Posts
    • 17,927 Thanks
    getmore4less
    • #4
    • 10th Oct 17, 9:59 PM
    • #4
    • 10th Oct 17, 9:59 PM
    Was there a life interest?

    Your mothers RNRB is transferable as she could not have used it.
    • Jo101
    • By Jo101 10th Oct 17, 10:02 PM
    • 57 Posts
    • 5 Thanks
    Jo101
    • #5
    • 10th Oct 17, 10:02 PM
    • #5
    • 10th Oct 17, 10:02 PM
    getmore4less. No, I don't think there was although I would have to double-check her will to verify that. I will try and find it tomorrow.
    Last edited by Jo101; 10-10-2017 at 10:21 PM.
    • Yorkshireman99
    • By Yorkshireman99 10th Oct 17, 10:25 PM
    • 3,149 Posts
    • 2,470 Thanks
    Yorkshireman99
    • #6
    • 10th Oct 17, 10:25 PM
    • #6
    • 10th Oct 17, 10:25 PM
    getmore4less. No, I don't think there was although I would have to double-check her will to verify that. I will try and find it tomorrow.
    Originally posted by Jo101
    Make sure you get professional advice to confirm the situation. A few hundred pounds will be money well spent. You should not rely solely on what you hear on this forum.
    • Jo101
    • By Jo101 10th Oct 17, 10:28 PM
    • 57 Posts
    • 5 Thanks
    Jo101
    • #7
    • 10th Oct 17, 10:28 PM
    • #7
    • 10th Oct 17, 10:28 PM
    Thanks Yorkshireman99, I will do.
    • Yorkshireman99
    • By Yorkshireman99 10th Oct 17, 11:00 PM
    • 3,149 Posts
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    Yorkshireman99
    • #8
    • 10th Oct 17, 11:00 PM
    • #8
    • 10th Oct 17, 11:00 PM
    Also depending on how close the estate is to IHT you may need a professional valuation of the house by a RICS surveyor. Estate agent's values will no suffice!
    • Jo101
    • By Jo101 10th Oct 17, 11:24 PM
    • 57 Posts
    • 5 Thanks
    Jo101
    • #9
    • 10th Oct 17, 11:24 PM
    • #9
    • 10th Oct 17, 11:24 PM
    I notice that one of the local estate agents round here advertises the fact the fact that one of their staff is a RICS registered valuer and undertakes 'Red Book' valuations for Inheritance Tax purposes. I don't know if that's a chargeable service or whether it would be free like a normal valuation.
    • Yorkshireman99
    • By Yorkshireman99 11th Oct 17, 12:11 AM
    • 3,149 Posts
    • 2,470 Thanks
    Yorkshireman99
    I notice that one of the local estate agents round here advertises the fact the fact that one of their staff is a RICS registered valuer and undertakes 'Red Book' valuations for Inheritance Tax purposes. I don't know if that's a chargeable service or whether it would be free like a normal valuation.
    Originally posted by Jo101
    It would be chargeable.
    • getmore4less
    • By getmore4less 11th Oct 17, 9:35 AM
    • 29,996 Posts
    • 17,927 Thanks
    getmore4less
    Many will waive the fees if you market with them some even if there is just a potential sale.
    • Jo101
    • By Jo101 11th Oct 17, 1:52 PM
    • 57 Posts
    • 5 Thanks
    Jo101
    Just checked my mother's will. Definitely no mention of a life interest.
    • Keep pedalling
    • By Keep pedalling 11th Oct 17, 2:10 PM
    • 3,750 Posts
    • 4,016 Thanks
    Keep pedalling
    Thanks for your reply keep pedalling.

    I think the total value of the property was around £400,000 at the time of my mother's death. My half of the property would have been £200,000 at that time (2012). So does that mean I would be able to transfer £125,000 of her NRB also, giving my father a total NRB of £650,000?

    Thank you.
    Originally posted by Jo101
    As it stands yes, but if the nil rate band changes, it will be based on the percentage of the original NRB used. The PRNRB is also rising over the next couple of years so will rise from the current £100k to £175k.

    As you have now confirmed that 50% of the house is owned by you and is not in trust you may also face a CGT bill if the property is sold.
    • Jo101
    • By Jo101 11th Oct 17, 2:19 PM
    • 57 Posts
    • 5 Thanks
    Jo101
    Would I be liable for CGT even though I actually live in this property with my father and have done so for the past 17 years?

    Also, could you please tell me what the letter 'P' stands for in PRNRB?

    Thanks.
    • Keep pedalling
    • By Keep pedalling 11th Oct 17, 3:17 PM
    • 3,750 Posts
    • 4,016 Thanks
    Keep pedalling
    Would I be liable for CGT even though I actually live in this property with my father and have done so for the past 17 years?

    Also, could you please tell me what the letter 'P' stands for in PRNRB?

    Thanks.
    Originally posted by Jo101
    As the house is your primary (which is what the p stands for) residence then you are exempt from CGT.
    • Jo101
    • By Jo101 11th Oct 17, 3:36 PM
    • 57 Posts
    • 5 Thanks
    Jo101
    Many thanks keep pedalling.
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