Inheritance tax question

xylophone

(ii) But she did remarry and divorce: now we need someone to come along who knows the implication of that.

http://www.hmrc.gov.uk/manuals/ihtmanual/IHTM43005.htm

Keep_pedalling

I believe this link is the appropriate one

http://www.hmrc.gov.uk/manuals/ihtmanual/IHTM43030.htm

This does not specifically mention a divorce with one partner, but it does clearly state that people who are married more than once can carry over any unused nil rate band from each spouse up to a maximum of 100%. Divorcing the second spouse does not cancel out any allowance acquired from the deceased spouse.

xylophone

The link in 12 above says

Unused nil rate band can only be transferred from one spouse or civil partner to the survivor when the relationship is brought to an end by the death of one party to the relationship.


The OP's father died when still married to her mother so that her mother can use his nil rate band.

The OP's mother is now divorced from her second husband so

"Where a marriage or civil partnership ends because of divorce or dissolution of the civil partnership and one of the parties to the relationship then dies, any unused nil rate band on their death is not available for transfer on the death of their former spouse or civil partner. Unless the divorcee or former civil partner remarries or enters a new civil partnership, any unused nil rate band on their death will remain unused."
- she cannot use the divorced partner's nil rate band.