Brought forward RNRB - non-qualifying beneficiary?


Husband and wife owned their main residence as TIC (50/50)

Wife died first, leaving her share to a non-qualifying (for RNRB) beneficiary.

When husband dies, his entire estate (including his share of the property) will be left to direct lineal descendants.

My question is - will he be entitled to her transferrable RNRB, on the basis that it was not used / not claimed on first death?

Kind Regards,

Iain McLeod

Yes. A transferable RNRB is available where the RNRB of the first spouse to die has not used their RNRB.

RNRB plus TRNRB must not exceed the value of surviving spouse’s interest in the residence (ie the 50%). Watch also the £2 million cap.Assume just the one marriage.

Malcolm Finney

Hi Malcolm,

Thank you for the reply. Yes just one marriage / no taper applies, etc.

The surviving husband has been advised that, because his late wife left her 50% share of the property to a non-qualifying beneficiary (“she wasted it”), he cannot transfer her ‘unused’ transferrable RNRB.

I have read through s8 IHTA1984 again and can see nothing that suggests this interpretation?

Thanks again.


Also - re: your second point. Surviving spouse’s 50% share is currently valued at £300k, so my assumption was that the surviving spouse (husband) would be able to claim at lease this much (using his own RNRB, and his late wife’s TRNRB) if he were to die today.

If the value of his share of the property were to increase to £350k by the time of his death, he could maximise the RNRB + TRNRB, assuming the thresholds stay the same. That was my assumption anyway!?

Your assumptions are correct.

Wife had an unused RNRB. Hence 100% of it is transferable.

On husband’s death (say today) his RNRB would be £175,000. However, because of the transferable NRB his RNRB in total is [£175,000 + 100% x £175,000] ie £350,000. He could therefore use both his RNRB plus the transferable NRB in full.

Malcolm Finney

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