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IHT Question
manc2005
Posts: 23 Forumite
in Cutting tax
Hi,
I am doing a coursework for uni where I have to calculate IHT for a deceased person and I would appreciate a little help.
in this fictious scenario, during lifetime X makes a number of lifetime transfers. In 1996, X transfers a sum of money into a discretionary trust(it is a immediately chrageable transfer (ICT) hence the reason i had to use the NRB here) in favour of his kids. the Nil rate band (NRB) for that year was 200k. after a couple more transfers he uses the NRB.
What i want to know is whether it is possible to have two NRB's? X dies in 2006 and so i was wondering whehter it he would be able to use the 2006 NRB (285K) to exempt himself from IHT for other lifetime transfers which were not covered by the first NRB.
I read in a textbook that a NRB covers transfers for a period of 7 years and after that you get a new NRB. Didn't understand this properly though.
Thanks in advance.
I am doing a coursework for uni where I have to calculate IHT for a deceased person and I would appreciate a little help.
in this fictious scenario, during lifetime X makes a number of lifetime transfers. In 1996, X transfers a sum of money into a discretionary trust(it is a immediately chrageable transfer (ICT) hence the reason i had to use the NRB here) in favour of his kids. the Nil rate band (NRB) for that year was 200k. after a couple more transfers he uses the NRB.
What i want to know is whether it is possible to have two NRB's? X dies in 2006 and so i was wondering whehter it he would be able to use the 2006 NRB (285K) to exempt himself from IHT for other lifetime transfers which were not covered by the first NRB.
I read in a textbook that a NRB covers transfers for a period of 7 years and after that you get a new NRB. Didn't understand this properly though.
Thanks in advance.
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