Cash Gift to Brother & IHT NRB

Prandar

I need to give my younger brother 175k, and getting very frustrated that I do not understand the 7 year IHT rule because I cannot work out if it applies to the money given UNDER the 325k NRB or money given OVER the 325k NRB

I'm in a civil partnership and have never given any assets ( Cash,Shares,Property ) to anyone in my lifetime and I've established that I will have my 325k IHT NRB fully intact on the day I give my brother 175k

Would I be right in saying that ( and assuming the 325k IHT NRB stays the same )

If I give my brother 175k on 1st November 2022 and NEVER give away any other assets ( Cash,Shares,Property ) before I die 

THEN on my death:

• My Brother will never have to pay HMRC tax on the 175k gift 
• My civil partner will never have to pay HMRC tax on the 175k gift 
• My Estate will never have to pay HMRC tax on the 175k gift 
• I will have 150k IHT NRB to pass to my civil partner

Thanks

DullGreyGuy

What is your total estate worth (inc the £175k)?
Will your whole estate go to your civil partner or will there be other beneficiaries?

How much nil rate band you have left will also depend on when you die relative to the date the gift was given. 

Prandar

I made my will to give my entire estate to my civil partner on my death with no other beneficiaries ,as to the total value of my estate as of today ,the only value i can give is that it should be more than 325k 

Jeremy535897

You are correct, except that if you die more than seven years after making the gift, your full nil rate band will be available to your civil partner, as the gift to your brother will be ignored. Also, you will presumably have two annual exemptions (totalling £6,000) to use if you have never made any other gifts (above £250 per person per tax year, and ignoring gifts to your civil partner), reducing the value of the gift for inheritance tax purposes to £169,000.

Keep_pedalling

If the money you are giving him has come from inheritance and you benefactor died within the last 2 years you can avoid the gift touching your NRB by making a deed of variation.