Is inheritance tax due?

LauraLondon19

Hi,

My Nan passed away in January and my mum and her brother have inherited the house. I am trying to help with probate. The house has been valued at £800k.

Is this right:
My Nan's nil rate band (£325k)
Her husband died in 1993 (transfer his £325k)
My Nan's residential nil rate band (£125k)
Her husband nil rate band (transfer £125k)
Total: £900k so no tax?

I'm not sure about transferring unused residential nil rate band as my mum spoke to someone from co op bank briefly a few weeks ago about probate and they said anything above £775k would be taxed.

My Nan's husband didn't own any property, the house was always in my Nan's name.

Any help will be appreciated.

getmore4less

The hubbys RNRB transfers.

nom_de_plume

Did everything pass to Nan at time of Grandad's death?

HappyHarry

s this right:
My Nan's nil rate band (£325k)
Her husband died in 1993 (transfer his £325k)
My Nan's residential nil rate band (£125k)
Her husband nil rate band (transfer £125k)
Total: £900k so no tax?

No. Because ...

My Nan's husband didn't own any property, the house was always in my Nan's name.

[STRIKE]So, unfortunately you can't use your Nan's husband's Residence Nil Rate Band, because he didn't own a property. https://www.gov.uk/guidance/check-if-you-can-get-an-additional-inheritance-tax-threshold

The person from the Co-Op bank was quite correct.[/STRIKE]


Scratch the above. getmore4less is quite correct.

HappyHarry

getmore4less wrote: »

The hubbys RNRB transfers.

[STRIKE]getmore4less is usually very good at these things, so it's possible my post above is incorrect.

Can anyone else verify?[/STRIKE]


Corrected. My post above was incorrect.

Tom99

HappyHarry wrote: »

getmore4less is usually very good at these things, so it's possible my post above is incorrect.

Can anyone else verify?

Yes you were incorrect. The RNRB did not exist in 1993, therefore it cannot have been used, therefore it transfers to the surviving spouse.

getmore4less

HappyHarry wrote: »

getmore4less is usually very good at these things, so it's possible my post above is incorrect.

Can anyone else verify?

It is the person the dies than needs to qualify to use the RNRB in this case that is the Nan.

HappyHarry

Tom99 wrote: »

Yes you were incorrect. The RNRB did not exist in 1993, therefore it cannot have been used, therefore it transfers to the surviving spouse.

D'oh!


Of course. I should never have questioned it!


Thanks.


(Previous post edited)

Keep_pedalling

You don’t mention any other assets, if your nan made any gifts in the 7 years prior to her death, or whether her husband left anything to anyone other than her, so it is not possible to say whether any IHT is due or not.

LauraLondon19

Keep_pedalling wrote: »

You don’t mention any other assets, if your nan made any gifts in the 7 years prior to her death, or whether her husband left anything to anyone other than her, so it is not possible to say whether any IHT is due or not.

She didn't have any other assets, just the house. She didn't have any savings and didn't gift anything significant (no more than £100) in the 7 years prior to her death. When my Nan's husband died in 1993, everything went to her (£7000 cash, no other assets)

mrschaucer

Sorry for being super-thick, but how come the grandfather's RNRB could be transferred to grandmother if HE never owned any property? I understand that the band didn't exist in 1993 so it "couldn't have been used", but why would he qualify for the band in the first place? OP has said "the house was always in my Nan's name".