RNRB and gift with reservation


(pauline) #1

Does the forum agree that if rent ceases to be paid for a private residence which was gifted 10 years ago, RNRB will be available as the property will then form part of the client’s estate under IHTA 84 S8H (4D).

I am concerned that the original gift was made prior to 08.07.15

Pauline Jackson
Saint & Co


(malcfinney1) #2

On cessation by the donor of the property to continue paying a market rent then the reservation of benefit provisions apply. As the property will then be subject to IHT as part of the donor’s death estate if the individual to whom the original gift was made was a lineal descendant the RNRB will be available.

The reference to the date 8.7.15 is of relevance under the downsizing rules under which the property gifted has to have been owned on that date.

If I’m correct it seems somewhat strange that to obtain the RNRB in your case that the donor deliberately triggers the reservation of benefit provisions !!

Malcolm Finney