The new inheritance tax residence nil rate band (RNRB) will be
available in the estates of those who die on or after 6 April 2017
provided they leave their interest in their family home to a direct
descendant (usually a child or grandchild).
HMRC have produced guidance and 18 case studies explaining
points such as the following:
How to calculate the RNRB
How to transfer any unused RNRB to a surviving spouse or civil
How the RNRB applies where the interest in the family home is
held in a trust
How the RNRB is tapered where an estate is worth over £2
It is important to understand the potential ramifications to
charities when taking into account these new rules. Legacy
officers will want to know that executors have administered the
estate in accordance with the actual terms of the Will and the RNRB
Unfortunately, the legislation and guidance leave open far more
questions than they provide answers and we anticipate that there
will be a number of construction issues in the future.
Personal applications for probate online
Personal applicants can now apply for grants of representation
online if invited to do so by the relevant probate registry.
The Non-Contentious Probate (Amendment) Rules 2016 (SI
2016/972) enabling this came into force on 1 November 2016.
This represents the start of an online system which the Ministry
of Justice eventually intends will deal with the whole probate
process, from start to finish.
It remains to be seen how much this process will be used
initially, but personal applications provide some safeguard against
'accidents' occurring. The concern must be that online
applications make fraud more tempting.
STEP Guidance Note: Lasting Powers of Attorney and
The Society for Trust and Estate Practitioners (STEP) has
published new guidance entitled 'Dealing with a person's
property and investing their money – a guide for Attorneys
Aimed at helping attorneys and deputies themselves, it sets out
information on understanding the extent of the Deputyship order or
Power of Attorney, together with basic information on the Mental
It then provides practical guidance on common issues such as use
of bank accounts, buying assets from P, occupying P's property
or paying for home alterations so that P can live with the
attorney/deputy, making gifts, recovering expenses, keeping
accounts, investments and deputyship standards.
Under current law, where a business subject to corporation tax or income tax reallocates an existing asset into its trading stock, the basic rule is that there is a deemed market value disposal of the asset...
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