Q&As

If the nil rate band increases between the deaths of spouses but the first deceased spouse fully used their nil rate band on their earlier death, can the estate of the second spouse to die claim any transferable nil rate band?

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Published on LexisPSL on 20/02/2018

The following Private Client Q&A provides comprehensive and up to date legal information covering:

  • If the nil rate band increases between the deaths of spouses but the first deceased spouse fully used their nil rate band on their earlier death, can the estate of the second spouse to die claim any transferable nil rate band?
  • The nil rate band
  • Calculating the TNRB

This Q&A assumes that the first spouse to die used their nil rate band (NRB) in full.

The nil rate band

Each person's estate is exempt from inheritance tax (IHT) up to a certain threshold, called the NRB.

Under sections 8A–8C of the Inheritance Tax Act 1984, as inserted by section 10 of the Finance Act 2008 and FA 2008, Sch 4, paras 1–2, it is possible for the unused percentage of the NRB from a late spouse or civil partner to be transferred on the death, after 9 October 2007, of the surviving spouse to the estate of that surviving spouse. This is called the transferable nil rate band (TNRB) and can have the effect of increasing the NRB available to the surviving spouse's estate by an additional 100%.

Calculating the TNRB

When

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