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05 February 2019
Extent of eligibility to inheritance tax residential nil rate bands.
My clients bought their only main residence in 1965. The husband lived there until December 2012 when he moved into a care home. The house was sold in August 2015 when his wife also moved into a care home.
The wife died in July 2016 leaving everything to her husband. Their nil rate bands were fully used by cash gifts after the sale of the house.
Should the husband die in 2018-19 is it correct that his estate can use the residential nil rate band of £125 000 along with £125 000 from his wife – increasing to £150 000 each after 5 April 2019)? The estate will pass to direct descendants whose estates are under £1m each.
I look forward to hearing from Taxation readers.
Query 19 303– Adviser.
Reply by ANA
There is entitlement to the nil rate band and the residence nil rate band
Adviser is correct. On the facts...
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