Commentary

I4.161C Nil rate band transfer examples

IHT, trusts and estates

I4.161C Nil rate band transfer examples

I4.161C Nil rate band transfer examples

Nil rate band transfer examples 1 and 2

Example 1—nil rate band transfer where there have been lifetime gifts

A died on 2 February 1999. He had made a lifetime gift of £34,000 cash to his daughter in 1997. By his Will he gave land worth £20,000 to his daughter and gave the remainder of his estate, valued at £30,000, to his wife B.

B died on 12 March 2020, having in August 2018 given a house then worth £360,000 to the daughter. The steps in calculation of the amount of nil rate band transferable from A to B's estate on death is as follows. The numbered steps correspond with those set out at I4.161A above.

  1.  

    (1)     The nil rate band at A's death was £223,000. The maximum chargeable transfer on A's death at a nil rate was £223,000 minus the chargeable part (after deduction of two

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