A client is considering increasing cash legacies in his mother’s Will (by DoV) to take advantage of 36% rate of IHT. In calculating the baseline and whether the total gifted to charities meets the 10% test, is the available residence nil rate band taken into account?
PLC’s practice note suggests that the RNRB is ignored. Have any practitioners had experience of HMRC allowing the RNRB in calculating the baseline?
Part of the mess that is the RNRB legislation is the fact that RNRB is not taken into account in calculating the baseline amount for the 36% IHT rate where 10% is given to charity.