Is inheritance tax due?

getmore4less

mrschaucer wrote: »

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".

Read the rules and stop trying to guess how it might work.

mrschaucer

getmore4less wrote: »

Read the rules and stop trying to guess how it might work.

Gosh, getmore4less, that's really helpful. Have good evening, now.

Yorkshireman99

mrschaucer wrote: »

Gosh, getmore4less, that's really helpful. Have good evening, now.

Sadly he does it all the time. Most people are helpful here so don’t let him put you off.

David_Aston

Nicely put Yorkshireman, so can you answer mrschaucer's question?

Yorkshireman99

David_Aston wrote: »

Nicely put Yorkshireman, so can you answer mrschaucer's question?

Thank you. Unfortunately I don’t know enough on the topic to advise. If one does not know it is better not to confuse the issue. I would like to know more.

David_Aston

Having just had a look at the Gov. page on the subject, complete with it's many examples, I am still nonetheless wiser.
Taking it from the opposite end, does it mean that a couple owning their home, would need it, plus the rest of their estate to be worth more than £800,000 before Inheritance tax would be due?
I did think it was £650,00.

Yorkshireman99

David_Aston wrote: »

Having just had a look at the Gov. page on the subject, complete with it's many examples, I am still nonetheless wiser.
Taking it from the opposite end, does it mean that a couple owning their home, would need it, plus the rest of their estate to be worth more than £800,000 before Inheritance tax would be due?
I did think it was £650,00.

The difficulty is that, as with so many rules and caveats that simple answers can’t cover all variations. It is worth repeating that paid for professional advice is essential. No prudent person can reply solely on advice from here. Sadly the are people on here that regularly give glib replies suggesting reference to the manuals is all nthat is needed. They are simply wrong and arrogant to advise people this way.

Tom99

mrschaucer wrote: »

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".

Just like the NRB it is the unused portion of the NRB and RNRB which automatically transfers to the surviving spouse. The only qualification are being dead and having a surviving spouse.
Because the RNRB did not exist in 1993 it could not have been used, whatever the grandfather's estate comprised, nor whoever he left it to. He could have left his spouse nothing but his £1m home to his son but, the RNRB would still be transferable to the surviving spouse because it was unused.

Tom99

David_Aston wrote: »

Having just had a look at the Gov. page on the subject, complete with it's many examples, I am still nonetheless wiser.
Taking it from the opposite end, does it mean that a couple owning their home, would need it, plus the rest of their estate to be worth more than £800,000 before Inheritance tax would be due?
I did think it was £650,000.

If the 1st spouse has died and left everything to the surviving spouse incl no gifts over £3,000pa in the previous 7 yrs, then the surviving spouse will have 2xNRB-£325k=£650k plus 2xRNRB-£125K=£250k Total £900k for 2018/19 tax year. The RNRB goes up to £150k on 6th April 2019 and £175k on 6th April 2020. So after April 2020 the IHT free limit would be £1m.

getmore4less

The answer had already been given and a suitable link to a summary of the rules that fit this case.

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

The link was obscured/struck out later but is still relevant

https://www.gov.uk/guidance/check-if-you-can-get-an-additional-inheritance-tax-threshold

Those that read that would have seen

How to use the additional threshold

You subtract the additional threshold from the value of the whole estate, not just the value of the home.

Add to this any unused additional threshold from a husband, wife or civil partner.

Where there is a fairly comprehensive section on the Unused additional threshold.