Apportionment of Residence Nil Rate Band

Hi all

I was wondering if someone could help me with a query I have regarding the apportionment of a RNRB.

The deceased was a beneficiary of a trust and the aggregated value of the estate and trust was approximately £1.5m. A successful claim has been made for the RNRB and the Revenue have issued calculations apportioning the RNRB between the estate and the trust (in the same way a NRB would be apportioned).

The fee earner previously dealing with the matter was of the opinion that the RNRB should only be allocated to the estate but I feel that the Revenue have taken the correct approach.

The beneficiaries of the trust and estate are different so obviously need to make sure calculations are correct!

Any advice would be much appreciated.

Thank you

HMRC I would suggest are correct. RNRB is simply a deduction in calculating the IHT on death (as is the NRB). The RNRB is not deducted specifically against the specific residential property as is often assumed.

IHTA 1984 s 200.

Malcolm Finney