The Transferable Nil Rate Band - Spouses


Just a query regarding the Nil Rate Band. Here is an example case:
1) A and B are a married couple. B dies and leaves all of their estate to A (so none of their NRB has been used). Therefore, A will have a NRB of £650,000 (due to the carried forward amount of £325,000).
2) A remarries several years later, to C.
3) C dies, and leaves all of their estate to A (so none of their NRB has been used either).
4) A remarries again, to D.
3) A and D get divorced.
4) A dies.

Essentially my question is does the transferable NRB carry across marriages?
Upon the death of person A, would they be able to use the unused nil rate band that was 'transferred' to them from B or C - or has this been wiped out and is no longer available following the marriage of A to C and then D?

I think I am correct in understanding that the maximum carried forward amount of transferable NRB will be £325,000, even despite having more than one spouse?
If anybody can shed any light on this it would be greatly appreciated.


  • benjaminfabibenjaminfabi Moderator


    You can never inherit more than 100% of the NRB in the year you die.

    In your example, A gets all this from B. Nothing that happens afterwards matters for A's estate, which if A had died yesterday, would have £650,000 NRB (assuming no other deductions).

    C's estate has effectively lost its NRB and could/should have used it on transfers to other people if there were any, barring any specific reasons A might have needed all of it.

    D has no relevance to A's IHT as far as I can tell, as they were both alive when they got married, and still alive when they got divorced.

    Benjamin Fabi 
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