Inheritance Tax and Residential Nil Rate Band that has passed to spouse

becrrw

If one parent passed away in 2021 and £175,000 of their residential nil rate band, plus £231,000 of their general nil rate band passed to the other parent, is that set in stone due to the laws at the time of their death or could their residential nil rate band allowance also be stopped from passing to the second parent if the law changes to remove the second parent's residential nil rate allowance? Thank you in advance.

Keep_pedalling

No it is not set in stone. If everything was left to a surviving spouse it would all be covered by spousal exemption so none of the NRB or RNRB will have been used. Under the current rules on the death of the second spouse those are transferable to that spouse, but the rules may have changed by the time the second spouse dies. 

So if for example the RNRB was scrapped then the transferable NRB would no longer be available either. 

Albermarle

becrrw said:

If one parent passed away in 2021 and £175,000 of their residential nil rate band, plus £231,000 of their general nil rate band passed to the other parent, is that set in stone due to the laws at the time of their death or could their residential nil rate band allowance also be stopped from passing to the second parent if the law changes to remove the second parent's residential nil rate allowance? Thank you in advance.

Suggest you wait to see what is announced in the budget, rather than worrying about what might be. I saw this morning that an overexcitable journalist in the  Daily Express was predicting that the RNB would definitely be abolished in the budget, so it that means it probably will not be, as their predictions are nearly always wrong.