IHT tax on gifts

Keep_pedalling

eezyrider said:

So in this case Deceased rents out his home/business and moves into rented accommodation. He sells his property to his tenant in 2021 and receives £451k on completion.

Are we saying the executors can claim £175k RNRB thereby taking his IHT threshold to £500k in which case no tax is due?

Really appreciate all the advice from everyone so far. Thank you.

That complicates things, when did he move out?

eezyrider

Keep_pedalling said:

eezyrider said:

So in this case Deceased rents out his home/business and moves into rented accommodation. He sells his property to his tenant in 2021 and receives £451k on completion.

Are we saying the executors can claim £175k RNRB thereby taking his IHT threshold to £500k in which case no tax is due?

Really appreciate all the advice from everyone so far. Thank you.

That complicates things, when did he move out?

We think he moved out in 2013. He then lived on his boat and 6 month intermittent lets in Spain until moving into his current rental about 2017

Keep_pedalling

eezyrider said:

Keep_pedalling said:

eezyrider said:

So in this case Deceased rents out his home/business and moves into rented accommodation. He sells his property to his tenant in 2021 and receives £451k on completion.

Are we saying the executors can claim £175k RNRB thereby taking his IHT threshold to £500k in which case no tax is due?

Really appreciate all the advice from everyone so far. Thank you.

That complicates things, when did he move out?

We think he moved out in 2013. He then lived on his boat and 6 month intermittent lets in Spain until moving into his current rental about 2017

Even more complicated, as he moved out prior to the introduction of the RNRB it can’t be claimed on the house he rented out, It might however be able to be claimed on his boat as that was his residence in 2017. 

https://www.hmo.co.uk/wills-and-probate/residential-nil-rate-band-rnrb/#:~:text=For%20example%2C%20an%20estate%20containing,surviving%20spouse%20or%20civil%20partner