Carryover Assumptions - Nil rate band transfers (carryover) from the death of a spouse prior to the beginning of the plan - UK

Q - How can I model a double IHT threshold? I have a client whose wife died a few years ago and he has inherited her nil rate band. So he technically has two nil rate bands now, so 200% of the current NRB. 

A - Nil rate band carryovers can be entered on the Dashboard - Carryover Assumptions screen, which is designed to capture all manner of tax related assumptions that predate the beginning of the plan. 

Go to this screen and for the People listed top left, select the name of the person who is to receive the transferred nil rate band.

Go to the Nil Rate Band Carry Forward & Previous PETs section of the screen, enter the percentage of the nil rate band carried over from prior to the beginning of the plan.

Note that the software will handle future nil rate band transfers automatically for a spouse or civil partner who dies over the course of the plan. 


To check it's set up how you would like go to the Legacy tab - detailed view via the dots and dashes and check in the 'Inheritance Tax Nil Rate Band' section.




Related topics

Marital status and the IHT exemption, Nil Rate Band carryover