Death of spouse before 2007

MrFlick

So if my partner died before 2007 does the transfer still apply?

eskbanker

Does what transfer still apply?

MrFlick

I meant that iht transferwas introduced in 2007 but partner died in 1983 

MrFlick

The transfer of INHERITANCE tax allowance. I ask on behalf of my mum who's partner died in 1983 and received 100% assets from my father so does she get the 325 000 iht allowance from now or what it was in 1983?

[Deleted User]

MrFlick said:

The transfer of INHERITANCE tax allowance. I ask on behalf of my mum who's partner died in 1983 and received 100% assets from my father so does she get the 325 000 iht allowance from now or what it was in 1983?

I think that you will have to clarify a bit more. When did your father die? Was he married to your mother at the time? Was her partner, who died in 1983, her partner? 

MrFlick

He died 7th January 1983 and was married to my Mother from May 1969. She has not remarried or have any new partner since

[Deleted User]

MrFlick said:

He died 7th January 1983 and was married to my Mother from May 1969. She has not remarried or have any new partner since

You need to find out what percentage of the NIL rate band was utilised by your father. If zero, your mother can benefit from the full £325000. Otherwise:

In 1982/83 tax year the threshold was £60000. If 40% of this was utilised, 60% wasn’t. 60% of £325000 is £195000 which is the figure transferable to your mother’s estate.

Jeremy535897

Yes. The ability to transfer the nil rate band was introduced in 2007, but it allows for the transfer from a spouse who died before 2007, if the survivor still lives or died after the introduction of transferability.

MrFlick

Many thanks for your reply. Just a quick question does that mean 1 million is the basis for the estate inheritance tax allowance then?

Jeremy535897

Each individual has a nil rate band of £325,000. On top of that, assuming they can use it, each individual has up to £175,000 residential nil rate band. So for a married couple it is up to £1 million, reduced for each person by any non-exempt gifts made by them in the seven years prior to their death.