The effect of the Transferable Nil Rate Band is that when a surviving spouse or civil partner dies, the nil rate band available at their death will be increased by the proportion of the nil rate band that was not used on the death of their spouse or civil partner.
The changes announced by the Chancellor in his Autumn Statement of October 2007 caused a certain amount of confusion. HMRC has now released a guidance note which includes several worked examples.The focus is on the extent to which the nil rate band of the first deceased spouse was unused.
If you think that this affects you, or if you have any other questions about Inheritance Tax (IHT), please contact Helen Freely or Felix Appelbe on 020 7242 7000.
