19 November 2007

Practicalities of the transferable nil rate band for Inheritance Tax ("IHT")

On 12 November 2007 HM Revenue and Customs ("HMRC") issued revised guidance on the practical implications of the transferable nil rate band for IHT, which came into effect, following the Pre Budget Report, on 9 October 2007.

The Guidance is in the form of frequently asked questions and is divided between:

• The basics
• Low value estates
• The process & record keeping
• Jointly owned assets
• Timing of deaths
• More than one marriage 
• Existing nil rate band trusts
• Miscellaneous
  

The Guidance contains some useful information about what you should do at various stages and in different circumstances.

The full document can be found here (http://www.hmrc.gov.uk/cto/iht/tnrb-faqs.pdf)

Following a few initial teething problems HMRC have issued an amended form to claim to transfer a nil rate band and this can be downloaded here (http://www.hmrc.gov.uk/cto/iht216.pdf)

If you would like further details about transferring an IHT nil rate band please speak to your usual Hazlewoods tax contact or Helen Richmond on 01242 237661 or e-mail her at hr@hazlewoods.co.uk.