NIL RATE BAND
24/03/2009
The NRB is a key part of IHT. There are three key rates of tax for IHT:
- 0%
- 20% and
- 40%
The value of the 0% band is known as the NIL RATE BAND (NRB) for the obvious reason that the rate of tax on that band of value is 0%. It is important to note that it is not an exemption but a 0% rate of tax. This is of significance when making chargeable transfers which are for less than the NRB where the fact that it is a chargeable transfer for IHT (even though there will be no IHT payable) matters for eligibility for s.260 TCGA 1992 hold-over relief.
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