The Property/Savings Split in the IHT Nil Rate Band

loiner

So, I'm aware that the NRB for property is £350K and for other assets is £650K for the last spouse where the 1st spouse has not used their allowance on death. Every article I read talks of an allowance of £1M per couple. However, where there is an imbalance does the £1M allowance apply as a total, or are the 2 individual allowances strictly adhered to?

eg house value £300K, savings value £700k, is IHT payable at 40% of £50k or zero?

Rodders53

https://forums.moneysavingexpert.com/discussion/6680247/the-property-savings-split-in-the-iht-nil-rate-band

Only £300k as RNRB is claimable… unless there was a downsize from a more expensive property in the past…

So yes, £12.5k IHT is payable on the £50k.

loiner

https://forums.moneysavingexpert.com/discussion/comment/82107740#Comment_82107740

Wouldn't £20K IHT be payable ie 40% of £50K?

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82107772#Comment_82107772

Yes it would.

Keep_pedalling

https://forums.moneysavingexpert.com/discussion/comment/82108240#Comment_82108240

If you sell and move in to a smaller property (rented or purchased) , move into care or move in with family your estate will still be able to claim the RNRB based on the value of the property you moved out of. This rule avoids the unfairness if people have to move out because there home becomes unmanageable or is no longer suitable to their needs.

This rule only if the move occurred after 6th April 2017.