residence nil rate band

REDSPARTAN

Hello All,
My father passed away 1989, no will, no probate, my mother his widow, passed away recently, what i would like to know is may i claim both residence nil rate bands, parents were married till death and everything in mums name. Thank you

Keep_pedalling

Yes you can, even though the allowance did not exist in 1989.

REDSPARTAN

Thank you. Solicitor said I could only claim for mother. Gave no reason. 

xylophone

Your solicitor might refer to
https://www.gov.uk/guidance/inheritance-tax-transfer-of-threshold under

Unused residence nil rate band (RNRB)

REDSPARTAN

Would property have to be in father's name when he passed? I have had several conflicting reports, some say can't claim yet others say one can.

getmore4less

Your father could not have used the RNRB(it did not exist)

It is transferable under the standard transfer rules at 100% so probably £175k(It does not matter what he owned ever, it is used)

It can be use against qualifying property by the person it transferred to(your mother) along with her own allowance.

The caveat is it is the lower of the available RNRB and the qualifying property value(including any downsize allowance following those rules).



You then have to pass the qualifying beneficiary test which looks like you do if you are getting it.

In most cases it is relatively simple but can get a bit confusing when there are things like life interest trusts around and that may impact what counts as qualifying.

REDSPARTAN

Thank you. Just spoke to solicitor, said "oh must be a loop hole I haven't heard of. Now worried as mother's estate very simple. Just the house and that's it no trusts no nothing.

getmore4less

Loop hole they are having a laugh this is pretty basic 
Point them at the HMRC manual  or RNRB for dummies if there is one.
In particular 
https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm46040

For deaths before 6 April 2017, as there was no RNRB at that time, none can have been used. The brought-forward amount will be 100% of the residential enhancement in force at the later death of the surviving spouse or civil partner.

If its a simple estate why use a solicitor?

REDSPARTAN

Agreed but solicitors involved was not my doing. Just trying to untangle what can be claimed for. It's seems simple but when  solicitor tells you they can't claim and must be a loop hole that they hadn't heard of you begin to doubt yourself and them.

Keep_pedalling

REDSPARTAN said:

Agreed but solicitors involved was not my doing. Just trying to untangle what can be claimed for. It's seems simple but when  solicitor tells you they can't claim and must be a loop hole that they hadn't heard of you begin to doubt yourself and them.

If the solicitor was appointed by the will you can ask them to renounce, although it might be too late for that if they have starred the process.

REDSPARTAN

No sibling decided to use them for probate, I was quite prepared to do it myself and have it signed off.