IHTM43031 - Calculating the transferable nil rate band: survivor has been married to more than one spouse or been in more than one civil partnership; limitation at 100%
Following the example from (IHTM43030), if Mei鈥檚 second husband Jack had left 拢55,000 to his niece the calculations would have been as follows
Unused nil rate band calculation
M = 拢275,000
VT = 拢55,000
M is greater than VT by 拢220,000
Transferable nil rate band calculation
E =拢220,000
NRBMD = 拢275,000 so
(220,000 梅 275,000) 脳 100 = 80.0000%
This would mean that on Mei鈥檚 death in January 2008, the nil rate band available on her death would potentially be
拢300,000 + (300,000 x 60%) + (300,000 x 80%) = 拢720,000.聽
Under IHTA84/S8A(5) this will be limited to 拢600,000.