Failed PETs and RNRB
Jona
Member
Morning all.
Just after some confirmation on my thinking.
On death, if there are failed PETs in excess of the NRB, can these reduce the RNRB? I think not....?
E.G. (and assuming current TY and full RNRB available as house going to kid etc)
Estate: 500K (of which 250K is home)
Failed PETS: 450K (with IHT due on excess above NRB)
Available NRB: 0 (due to failed PETs)
Available RNRB: 100K (i.e. the 125K balance of failed PETs cannot reduce RNRB).
Thoughts very welcome.
Ta
Just after some confirmation on my thinking.
On death, if there are failed PETs in excess of the NRB, can these reduce the RNRB? I think not....?
E.G. (and assuming current TY and full RNRB available as house going to kid etc)
Estate: 500K (of which 250K is home)
Failed PETS: 450K (with IHT due on excess above NRB)
Available NRB: 0 (due to failed PETs)
Available RNRB: 100K (i.e. the 125K balance of failed PETs cannot reduce RNRB).
Thoughts very welcome.
Ta
Comments
Also, whilst failed PETS do impact estate value for IHT they do not impact the estate value for assessing if over the £2m limit for scaling back RNRB.
You are correct. PETS / Gifts have no impact on RNRB.
https://www.gov.uk/guidance/inheritance-tax-residence-nil-rate-band#how-to-calculate-and-apply-the-additional-threshold
Gifts and other transfers made during a person’s lifetime (lifetime transfers)
Unlike the basic Inheritance Tax threshold, the additional threshold doesn’t apply to any lifetime transfers, such as: