Downsizing residence nil rate band
Suppose a married couple own a house as joint tenants. They sell this house for £500,000 and buy another house for £300,000. The remaining £200,000 is split between the two of them and put into personal accounts.
On the subsequent death of one of the owners, the second house passes to the surviving spouse and so is outside the estate. Is it sufficiently outside the estate to avoid the 'grossing up' rules?
£100,000 from the first house is part of the estate (and the estate is left to the children, not the spouse). Can the downsizing residence nil rate band be claimed in this case or does the face that that house was owned as a joint tenancy prevent this?
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