Transfer of RNRB 23 January at 2:30PM in Deaths, funerals & probate 10 replies 288 views

Jo101

My father died in 2022, my mother died in 2012.  I believe I can deduct £175,000 for my father's RNRB (even though he only owned half the property as we were joint owners) but what amount can I deduct if I transfer my mother's RNRB?  Thanks.

Malthusian

Potentially another £175,000. (Assuming there is a qualifying transfer, the share of the home is valuable enough, etc etc.)
The fact that she died before the RNRB existed does not in itself mean you can't claim it. It also doesn't matter if she didn't own a share in the home.

Keep_pedalling

How much is the house worth? If the property is worth £350k or less you can’t claim any of her RNRD, it would need to be worth at least £700k to claim both RNRBs.

Jo101

The house is worth £600,000 total but he only owned half of it, so his share is £300,000.  I've just been doing a quick calculation of his assets and they are as follows:

Savings £225,734.68
Property £300,000.00 (his half share)
Car £1,500.00 

TOTAL ASSETS £527,234.68

Deductions I can make are as follows:

NRB £325,000.00
RNRB £175,000.00
Funeral and associated costs £6,927.30

TOTAL DEDUCTIONS £506,927.30

Mother's unused RNRB is 100%.  She died in 2012.

Keep_pedalling

It would be better to ignore the RNRB and just use his NRB plus the transferable NRB from your mother. This gives a total exemption of £650k and has the advantage of not having to do the IHT return that is needed when claiming either RNRB.

Jo101

Keep pedalling, I don't think I explained things properly.  Sorry about that. I should have mentioned when my mother died, she left her estate to me and that exceeded the NRB so I ended up paying some IHT on it.

poppystar

Was the share in the house left to you absolutely by your mother or in a life interest trust so your father had the benefit of living there? 

Jo101

Left absolutely to me by my mother.

Keep_pedalling

Jo101 said:

Keep pedalling, I don't think I explained things properly.  Sorry about that. I should have mentioned when my mother died, she left her estate to me and that exceeded the NRB so I ended up paying some IHT on it.

Apologies my misunderstanding.

Jo101 said:

Left absolutely to me by my mother.

That was probably a mistake, a life interest trust would have avoided paying IHT on her estate and unless you have lived in the property since her death you will now have a capital gains liability on the share you inherited from her when / if you sell it.

Jo101

Keep pedalling, I have lived in this property for over 20 years and intend to carry on living here now that both parents have died.

Keep_pedalling

Jo101 said:

Keep pedalling, I have lived in this property for over 20 years and intend to carry on living here now that both parents have died.

No CGT liability then as it is your main residence.