I’m hoping for some clarification on the wording of a NRBDT will please.
HMRC guidance suggests that the wording
“…to my trustees such sum as I could leave immediately before my death with IHT becoming payable”
as only allowing one NRB because any transferrable NRB is not available “immediately before death”.
The wording I have is similar and my gut feeling is it is the same outcome, but I would welcome your views:
“…the largest sum of cash which could be given on the trusts of this clause without any IHT becoming due in respect of the transfer of the value of my estate which I am deemed to make immediately before my death”
My inclination is that, unlike the HMRC wording, the clause in question would include any transferable NRB.
The HMRC clause refers to a gift “immediately before my death”, whereas the clause from the will refers to “the transfer of value that I am deemed to make immediately before my death”. As the IHT charge on death is based upon the deemed disposal immediately before the death, it would seem strange if the wording of a gift reflecting this would exclude the transferable NRB which, if claimed, would reduce that IHT charge.