Transferability of RNRB where first spouse to die is non dom

Trusts Discussion
1

My client is UK LTR, and her late husband was non dom. He had no assets in the UK, and his estate passed between his children and his partner (my client and he were separated). My client has asked whether she can claim his NRB and RNRB.

My understanding is that his NRB could be claimed by my client’s PRs on her death as it was entirely unused on his death. My question is whether his RNRB could also be claimed on my client’s death? He did own property in the country he was domiciled in but this passed to his partner and not his children, and therefore his RNRB was entirely unused on his death.

My reading of the commentary suggests that the same principles apply to the transferability of the RNRB as to the NRB, which would suggest to me that the TRNRB could be claimed on my client’s death, but I cannot find a concrete answer.

Any thoughts much appreciated!

2

My understanding is that you can claim the TRNRB from a deceased non- UK LTR spouse, but it can only be used against a qualifying UK residential property that is included in the surviving UK LTR spouse’s estate and left to direct descendants. It doesn’t matter that the non UK LTR didn’t own residential property in the UK.

3

I claimed a TRNRB in an estate when the deceased’s predeceased spouse was never domiciled or LTR in the UK. The deceased himself was never in fact domiciled or LTR in the UK but had lived for some years in a UK apartment which he owned and which he left to his daughter. HMRC agreed that his estate could claim a RNRB and a TRNRB.

Cliona O’Tuama