Wife died in 2014 leaving all of her residuary estate (including the house) to her husband. The husband sold the property in 2017 for £400,000.00 and bought a cheaper property. He died in April 2022. The house has been valued at £225,000.00.
It is my understanding that downsizing doesn’t apply to his estate because the value of the new property is in excess of the RNRB.
The full TRNRB is available to transfer from the estate of the first spouse to die, however, I am not clear as to whether just £50,000.00 of the TRNRB should be applied as otherwise the total of the 2 allowances will exceed the value of the property.
Even if downsizing is available in the estate of the first spouse to die, presumably you can’t apply more of the allowance than the house is worth?
I would be grateful if anyone with any experience of dealing with these provisions in the past could put me on the right track.