Transferable Residence Nil Rate Band

Trusts Discussion
1

I am preparing my first Inheritance Tax return in which I am potentially claiming a transferable residence nil rate band and am uncomfortable with completing form IHT435. I can follow the steps through to question 14 where I note the available TRNRB and ignore the downsizing provisions. The final question, 25, instructs me to use the online calculator to give the total RNRB available.

If I do this in a case where the second estate is over £3 million then both the RNRB and TRNRB are tapered to zero. I want to be sure that this result is correct but can find no discussion of tapering of the TRNRB in relation to the value of the second estate.

Are contributors happy that the calculator accurately reflects the correct IHT position?

Jeremy Crouch
Clintons

2

I believe this is correct Jeremy.

Simon Northcott

3

Yes, tapering will effect both the RNRB and the TRNRB.

Tobias Gleed-Owen
Hewitsons LLP

4

Thanks Simon - and good to hear from you.

Jeremy Crouch
Clintons

5

I too am confused on a similar point.

If the second estate is tapered to zero, does that automatically defeat a claim for TRNRB irrespective of the size of the first estate?

HMRC’s calculator does not seem to ask for the value of the first estate to look at tapering for the first estate…

Many thanks

Claire Muirhead
Farnfields Solicitors

6

Claire, the tapering of the TRNRB in respect of the value of the first estate is dealt with in form IHT436. This calculates the amount of TRNRB available which is then entered into the calculator. Hope that helps.

Jeremy Crouch
Clintons