RNRB - Gift 1/2 share to Trust

We are dealing with W’s estate - H having predeceased (2011). H’s 1/2 share of the property was gifted on trust to his children with IPDI for W. W share of property passes to the children. Full value of the property is £425,000. As the property is included in W’s estate for IHT purposes, can we use the full value of the property to calculate the available RNRB? If limited to only 1/2 share then RNRB limited to £170,000.

As W’s beneficial share of the property passes directly to W’s children (ie is inherited) her estate is entitled to a RNRB (175k).

On H’s death his interest was settled on an IPDI for W and hence H’s estate did not utilise any part of the RNRB.

Hence, W’s estate is entitled to its own RNRB plus a transfer of H’s unused RNRB ie 350k in total.

Malcolm Finney

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Thank you – I understood that the RNRB and the transferable RNRB would potentially be available. However, given that W’s beneficial interest is only £212,500 (i.e. half of the £425,000 full value of the property) I am unsure whether the available RNRB would be limited or whether because the full value of the property forms part of W’s IHT estate the RNRB and transferred RNRB would be available in full, so £350k.








There is nothing in the legislation to preclude an individual having more than one qualifying residential interest in the same residential property (as here ie absolute interest plus qualifying interest in possession) in which case they are aggregated as if forming just one such interest.

Hence, W’s qualifying residential interest amounts to £425k (and a transfer of H’s unused RNRB could be made).

Malcolm Finney

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