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Hi,
I am confused with the Nil Rate Band on the Additional IHT on Lifetime Transfers Chargeable on Death in the Example 2 and Example 4.
Example 2 has no available nil rate band as it has used up within the previous 7 years of the date of death. Example 4 has the similar situation but why the nil rate band is available and has not been used up?
Can someone please explain to me? NRB is really confusing..
Thank you.
GloriaNRB can be confusing but remember the 7 year rules is the key.
You are correct about example 2Example 4:When Joe dies, all 3 of the lifetime gifts become taxabe/have additional tax to pay.
The PET in 2016 uses 29,000 of the NRB
The CLT in 2017 uses the balance of the NRB which means that the PET in 2021 is fully taxable
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