Downsizing and TRNRB

Wife died Feb 2018 leaving all estate to Husband
Husband sold house for £585,000 in May 2019 to move into care home when RNRB was £125,000
Husband died April 2021.
Am I right in thinking Husband’s estate only benefits from the amount of RNRB at date of sale i.e. £125,000 but plus a full £175,000 TRNRB making total £300,000?

Couple of initial comments:

  1. In May 2019 the RNRB was £150,000 not £125,000.

  2. A TRNRB is available on husband’s death which is 100% of the RNRB in 21/22 tax year (or 20/21)
    ie 100% of £175,000 namely £175,000.

My attempt at the calculation is as follows:

Step 1 Max RNRB at date of sale £150,000. TRNRB of £175,000 giving total £325,000.

S2 House sold for 585k giving a % of 100%.

S3 No home act death gives 0%.

S4 S2 minus S3 gives 100%.

S5 Max RNRB at death £175,000 plus TRNRB of £175,000 gives £350,000.
Lost RNRB is 100% of £350,000 ie £350,000.

The amount of the Downsizing Allowance is thus the lower of £350,000 and the amount of the other assets in father’s estate which are directly inherited.

Malcolm Finney