NRBDT 10 Year Anniversary Reporting - 80% exemption

Trusts Discussion
#1

Is it really true that the Statutory Instrument of The Inheritance Tax (Delivery of Accounts Excepted Settlements) Regulation 2008 has not been updated/changed/amended in the last 12 years? If feels really odd that there is something out there that the Government hasn’t tinkered with at all since coming into force so I am disbelieving my computer telling me I’m looking at the most update version!

I want to ensure that section 4(4) is still good law – the no need to report on 10 year anniversary if the value is below 80% of NRB applicable to the NRBDT.

Elizabeth Foggin
Autumn Years Law

#2

You’ve jinxed it now.

Not only still the same but the Govt has helpfully refused to increase the nil rate band so the absolute cash figure has remained the same as well.

Andrew Goodman
Osborne Clarke LLP

1 Like
#3

Yes, still good law ie the 80% applies to the statutory nil rate band at the relevant time (still £325k).

Malcolm Finney

#4

Just a quick question.

When setting up a NRBDT from a Will where there are 2 NRBs to use (from widowed spouse) so up to £650k included in the Trust on the 10 year anniversary when calculating the charge is it the Nil Rate Band figure used at the start (£650) or is it reduced to a single allowance of £325?

Maria Goodacre
Bells Solicitors Ltd

#5

It is only the single NRB that will be available.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

#6

Just the one as it’s based on a hypothetical transfer rather than the actual transfer at the death.

Andrew Goodman
Osborne Clarke LLP

#7

Is that the NRB at the applicable time the applicable time at the time of reporting (i.e. the ten year anniversary) or the NRB at the time the NRBDT was created?

(i.e. if the NRB was £300K at date of death but the NRB is £325K on the ten year anniversary, which applies?) Feeling stupid I can’t put my hand on the answer and all my CPD course notes with Chris Whitehouses’ useful guidance are all at the office, whereas with Covid I’m working remotely.

Elizabeth Foggin
Autumn Years Law

#8

The value transferred by the relevant notional chargeable transfer does not exceed 80% of the inheritance tax threshold for the year in which the chargeable event occurs.

Malcolm Finney

#9

Thank you Malcolm. I knew it was staring me in the face !

Elizabeth Foggin
Autumn Years Law