IHT transferable nil rate band

When one spouse or civil partner dies before the other and part or all of their nil rate band is unused at that time (usually because all the assets of the first spouse or civil partner pass tax free to the surviving spouse or civil partner), any unused nil rate band can be carried forward and added to the nil rate band of the survivor.

As there may be a considerable time between the death of the first spouse or civil partner it may be difficult to prove what if any nil rate band has been transferred.

HMRC will require details of the IHT history of first death in order to agree any claim made on the second death.

Details to keep after the first death:

The following are a list of documents and records that should be retained where there is a transferable nil rate band available following the first death of a member of a couple or civil partnership.

• A copy of the IHT forms or full written details of the assets in the estate and their values
• Death certificate
• Marriage or civil partnership certificate
• Copy of the grant of representation (‘confirmation’ in Scotland)
• A copy of the will (if there was one)
• A note on how the estate was passed (if there was no will)
• A copy of the deed of variation or other similar document
• Any valuations of assets that pass under the will or intestacy other than to the surviving spouse or civil partner
• The value of any other assets that also passed on the death of the first spouse or civil partner, for example, jointly owned assets, assets held in trust and gifts made in the seven years prior to death
• Any evidence to support the availability of relief (such as agricultural or business property relief) where the relievable assets pass to someone other than to the surviving spouse or civil partner

Keep these documents with your own will, if possible
.