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Chapter IHTM06026

Document Cited in Related
Vincent
Published date20 March 2016
Record NumberIHTM06026
CourtHM Revenue & Customs
Example 1

Robert died on 7 June 2010, leaving an estate consisting of property passing by Will of £300,000, and having made specified chargeable transfers of £140,000 3 years before he died. His wife, Hilda, died before him on 15 October 2002, leaving her whole estate to Robert.

Robert’s personal representatives may make a claim to transfer the whole of Hilda’s nil rate band. As the gross value of Robert’s estate (£440,000) does not exceed £650,000, his estate qualifies as an excepted estate.

Example 2

Annette died on 24 October 2010, leaving an estate of £925,000 passing by Will, of which £300,000 is bequeathed to her second husband, Ian. She was predeceased by her first husband Andrew who left his entire estate to her.

Annette’s personal representative may make a claim to transfer the whole of Andrew’s nil rate band. As the net chargeable value of Annette’s estate after deducting spouse exemption (£925,000 - 300,000 = £625,000) does not exceed £650,000, her estate qualifies as an excepted estate.

Example 3

James died on 21 January 2011, leaving a free estate of £600,000. His first wife, Jane, died before him in June 2002 and left her whole estate to James. During her lifetime she had made chargeable transfers of £100,000.

James’ second wife, Mary died in February 2008, and left her whole estate worth £200,000 to James.

James has survived both his wives. Jane’s estate does not meet the conditions for the estate of the first deceased person, so any TNRB from her estate must be ignored. But Mary’s estate does qualify so a claim can be made to transfer the whole of her nil rate band. As the gross value of James’ estate (£600,000) does not exceed £650,000, his estate qualifies as an excepted estate.

If Mary’s estate had been partially chargeable, James’ estate would not have qualified as an excepted estate because the claim for TNRB would be from two estates. In any event, neither Jane nor Mary’s estate would meet the conditions...

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