Inheritance Tax - Transfer of Unused Nil Rate Band Allowance

norm27

Hello. I have read the Gov.UK and other websites relating to Inheritance Tax but am still unclear about one aspect as follows.

My wife died in 2011, we lived together in the jointly owned property I am still occupying today which is valued at around £350k.  If I have understood it correctly, based on the current rules, when I die my IHT threshold will be my £325k  allowance plus her Transferred Unused Nil Rate Band allowance of £325k plus my Residence Nil Rate Band allowance of £175k when I pass my house onto my children, giving a total IHT allowance of £775K. (If this is incorrect please feel free to let me know).

My question relates to the transfer of my wife's Unused Nil Rate Band allowance and is  - how do I get that allowance registered and accepted as part of my allowance  - should I have submitted paperwork after her death, should I do something now or is it done by my Executors ie my children upon my death? I have read Forms IHT400 and IHT402 but am no wiser.

Thankyou for any help you can give.

Keep_pedalling

Nothing needs to be done in advance of your death. Your estate will also be entitled to your wife’s unused residential NRB, giving up to £1M total,exemptions.

cherry76

Am also interested in this question. Surely in order to claim  his wife unused residential NRB probate must be obtained first. My understanding I might be wrong you must obtain probate in order to claim unused NRB. Am in the same situation with dad recent passing whether I should apply for probate now or wait to apply both at the same time when mu, passed.

poppystar

cherry76 said:

Am also interested in this question. Surely in order to claim  his wife unused residential NRB probate must be obtained first. My understanding I might be wrong you must obtain probate in order to claim unused NRB. Am in the same situation with dad recent passing whether I should apply for probate now or wait to apply both at the same time when mu, passed.

It’s the probate for the second death where you claim the unused NRB for the first death. There is no need therefore to do anything until you need to deal with your mother’s estate.

norm27

Just to say thankyou for clarifying this, it is appreciated.