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Transfer of Inheritance Tax Nil Rate Band

Can you deduct liabilities when calculating percentage to transfer Nil Rate Band

When completing IHT 402 to transfer unused Nil Rate Band to a spouse, there is a box to put in the Net Estate and boxes to put in the Assets. There are no boxes for liabilities. The calculation uses the Gross value of the estate. Do Liabilities not get taken into account or how do you put them into the calculation.


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By maxaca
17th Feb 2017 17:27

The net Estate is after liabilities and the form does not ask for the gross estate but rather the amount of the then prevailing nil rate band and the (net) Estate that did not pass to the surviving spouse in order to calculate what percentage of the currently prevailing nil rate band can now be used - admittedly it is a rather cumbersome calculation but then isn't everything to do with IHT calculation?

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