Transfer of RNRB

sunsetboulevard

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.

Keep_pedalling

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.

sunsetboulevard

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

Was there a life interest?

Your mothers RNRB is transferable as she could not have used it.

sunsetboulevard

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.

Yorkshireman99

Jo101 wrote: »

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.

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.

sunsetboulevard

Thanks Yorkshireman99, I will do.

Yorkshireman99

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!

sunsetboulevard

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

Jo101 wrote: »

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.

It would be chargeable.

getmore4less

Many will waive the fees if you market with them some even if there is just a potential sale.