[Mohamed Sulaiman]

Any amount of NRB that has not been utilised at the time of a person’s death can be transferred to their spouse or civil partner.

• The surviving spouse or civil partner will have the benefit of
– their own NRB, and
– any unused proportion of their spouse’s or civil partner’s NRB.
• This increased NRB can be used against any lifetime gifts taxable as a result of the donor’s death AND the death estate.
• The amount of the NRB that can be claimed is based on the proportion that was unused by the first spouse to die.
• The unused proportion is applied to the NRB available on the second spouse’s death.

You calc Hubby’s unused NRB %, then apply it to Wife’s NRB and get the unused NRB in $.
Then add the calculated amount to Wife’s NRB.

Unused NRB of hubby is 20% if you calulate, it will come as 65000. then add it to wife’s NRB (325000+65000=390000)

Then when calculating IHT As A Result Of Death, you shuold use this 390000 instead of 325000.

[Author]

Posts