Inheritance tax and nil rate band

Lindagreenacre

I know that if you leave your share of a property directly to your spouse or child then the nil rate tax applies.  My husband and I own our property outright as tenants in common and our wills state that on our death our individual share in the property goes into trust for our son, but the surviving spouse can live in it for the rest of their life.  In this case does the nil rate apply?

xylophone

In these circumstances, the RNRB of the deceased transfers to the surviving spouse (and beneficiary of the Immediate Post Death Interest in Possession Trust) and can be set against the IHT liability  of that spouse on death.

https://techzone.adviserzone.com/anon/public/iht-est-plan/Tech-guide-iht-on-death

Lindagreenacre

xylophone said:

In these circumstances, the RNRB of the deceased transfers to the surviving spouse (and beneficiary of the Immediate Post Death Interest in Possession Trust) and can be set against the IHT liability  of that spouse on death.

https://techzone.adviserzone.com/anon/public/iht-est-plan/Tech-guide-iht-on-death

Thanks, I think that I understand you, though plain English would help.  I guess that RNRB is ?nil rate band.

Lindagreenacre

Thanks for the link.  I will plough my way through it, though it may take a few reads to digest the information..

Keep_pedalling

Lindagreenacre said:

xylophone said:

In these circumstances, the RNRB of the deceased transfers to the surviving spouse (and beneficiary of the Immediate Post Death Interest in Possession Trust) and can be set against the IHT liability  of that spouse on death.

https://techzone.adviserzone.com/anon/public/iht-est-plan/Tech-guide-iht-on-death

Thanks, I think that I understand you, though plain English would help.  I guess that RNRB is ?nil rate band.

No, if you own a home and leave the bulk of your estate to your direct descendants then on top of the the NRB, you also get a residential NRB (RNRB), which allows a couple to leave up to £1M tax free. Both allowances are transferable if not used on the first death.