I have come across a position where the family home is owned by the wife 75% and her mother 25%. The question is will the husband qualify for RNRB even though he has only ever owned a home he has not lived in?
Presumably if the wife’s will leaves the house to the husband, he would then be able to claim her TRNRB and his RNRB but if she does not leave it to him he would be able to claim neither?
Also if he dies first, presumably she would be able to use his TRNRB given he would not have utilised it at this point?
The RNRB can be used only by those who held a ‘qualifying residential interest’ at some time during their lifetime. Simply, they need to own or have part ownership of a property that was their residence at some point during the period of ownership.
The RNRB cannot be offset against other properties owned by the deceased; for example, buy-to-let or investment properties.
Any individuals who do not own their home will be unable to utilise the RNRB as they will not have a qualifying residential interest (although the RNRB may still be available in some cases – for example where the deceased ‘downsized’ or sold a property to move into residential care on or after 8 July 2015).
In very short summary:
No - he must have lived there
Yes - he could claim the RNRB and TRNRB but not if he never owns it
Yes - he will not have used his RNRB so it should be transferable.
This assumes that both estates will be less than £2m.
Osborne Clarke LLP