• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

UNUSED RNRB

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › UNUSED RNRB

  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by Tax Tutor.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • May 14, 2020 at 4:14 pm #570850
    draiells
    Member
    • Topics: 123
    • Replies: 141
    • ☆☆☆

    Hello Sir, I hope you’re doing good.
    Please help me clear my confusion..

    When the unused RNRB for instance 150000 (100%) of the first spouse can be transferred to the second spouse who has left main residence to direct descendants worth $188000.

    What is the total amount of residence nil
    rate band which will be available when calculating the IHT payable on second spouse’s
    chargeable estate?

    The answer given in kaplan kit for this ques#200(2) is 188000 which is:

    The available RNRB is the lower of:
    ? Lebna’s RNRB of £300,000 (W1)
    ? The value (net of repayment mortgage) of the main residence of £188,000 (W2)
    ___________________________________
    My doubt is, don’t we apply the lower of rule like on second spouse’s individual available RNRB compared with his main residence that would give us 150000 as the answer
    and then we take 150000*100% for unused transfer
    so that we end up with the final answer of 300000.

    help me understand the answer given in the kit is it the correct logic?
    As another ques from kaplan kit ques#205 (a) (2) has a similar situation but in that ques they’re taking the RNRB for second spouse in the tutorial note as $300000 even though the value of main residence is $290000

    Sir please help me clear this concept and application of the lower of rule.. Nothing has been mentioned about it in the study texts.. there are only simple transfer questions where we don’t compare the unused transfer+own RNRB with the value of main residence to get the lower of.

    May 15, 2020 at 6:08 pm #570961
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    The RNRB is by its name specific to ONLY the taxpayer’s main residence and only when it is transferred on death to a direct descendant – if therefore the value of the main residence is less than the taxpayer’s available RNRB (increased if relevant by the transfer of unused RNRB from a spouse or civil partner) then the RNRB to apply is limited to the value of the main residence.
    In your examples above from the information you have supplied – I do not have the Kaplan kit – the first example correctly limits the available RNRB of £300,000 to the property value of £188,000 and in the second example the RNRB must also be limited to the lower value of the property which you have stated is £290,000

    May 18, 2020 at 12:25 am #571154
    draiells
    Member
    • Topics: 123
    • Replies: 141
    • ☆☆☆

    Thanks a ton for the clarification sir, I’m assuming the second answer which was basically a tutorial note explanation is incorrect then.

    Thank you once again and honestly love all your lectures so detailed and very much easy to understand.

    May 20, 2020 at 9:40 am #571300
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    Correct – the RNRB cannot be greater than the net value of the main residence included in the chargeable estate, otherwise it would be reducing the value of assets other than the main residence

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • omerbasheer on The Statement of Financial Position and Income Statement (part d)
  • Kim Smith on AA Chapter 9 Questions
  • Walkera on Basic Variance Analysis part 1 – ACCA Performance Management (PM)
  • kartierclass on AA Chapter 9 Questions
  • revathik on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in