I am tying myself up in knots with what is probably a very simple question but I would be very grateful if someone could straighten me out as I can’t seem to find the answer.
I have a taxable estate with separate bequests of various items, bank accounts and the deceased’s residence all of which are expressed to be subject to tax. There is no residue to speak of. The RNRB will apply. For the purposes of calculating the IHT attributable to each bequest, does the RNRB simply apply across the estate or can it be applied to the gift of the property itself?
Many thanks
Whilst RNRB (in all its forms) is only available in certain circumstances, the relief is a general relief for the estate and, therefore, does not attach to any specific asset. If, say, the deceased had a qualifying interest in possession in a trust furn in which the residence was held, RNRB would be shared by the trust fund and the deceased’s own estate.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
Thank you Paul. Clarification much appreciated.