Learn the practical steps surrounding the transfer of the inheritance tax nil rate band.
- It's possible to transfer any unused percentage of the inheritance tax nil rate band from a deceased spouse or civil partner to the surviving spouse or civil partner.
- A formal claim process is in place when the surviving spouse dies and not when the first spouse dies.
- Where there has been more than one marriage, the survivor’s NRB can never be increased by more than 100%.
- Records should be kept after first death to support the subsequent transferable NRB claim.
- Regardless of domiciled status, every individual is entitled to the full NRB.
- On 23 November 2018, the Office of Tax Simplification published its First Report regarding its review of the IHT regime. The second report was published in July 2019.