THE NEW RESIDENCE NIL-RATE BAND

THE NEW RESIDENCE NIL-RATE BAND

CHARLES COOPER CONSIDERS THE RESIDENCE NIL-RATE BAND AND TRANSFERABLE RESIDENCE NIL-RATE BAND FOR INHERITANCE TAX

Inheritance Tax is payable on the value of a deceased’s estate above a set threshold, referred to as the Inheritance Tax Nil-Rate Band (‘NRB’). Since 09 October 2007 it has also been possible to claim the unused NRB of a spouse or civil partner who died before them, referred to as the Transferable Nil-Rate Band (‘TNRB’). From 06 April 2017 there has been an additional Residence NRB (‘RNRB’) and a Transferable Residence NRB (‘TRNRB’), the legislation for which is set out at ss.8D-8M Inheritance Tax Act 1984 (as inserted by s.9 Finance (No 2) Act 2015).

The RNRB and TRNRB legislation is relatively new and untested. ‘Residence’ refers to any interest in a dwelling house that was the deceased’s residence, at some point in time, and that interest must be ‘closely inherited’ (inherited by a lineal descendant) on or after 06 April 2017 for the legislation to apply. Where the first spouse or civil partner died before 06 April 2017 then 100% TRNRB should be available on the second death. These reliefs are subject to tapering provisions, and allowance has been made for individuals who ‘down-sized’ before death.

A specific gift of residence to a spouse or child under a Will is obviously ‘closely inherited’, but most Wills just leave residue to a spouse or child either absolutely or in trust.

If the residence forms part of residue, it is to be regarded as closely inherited for the purposes of RNRB to the extent that the residuary estate is closely inherited. For example, where residue (containing a residence) is to be divided one half to a child and one half to charity, only half of the residence would be treated as ‘closely inherited’.

If the residue is left in trust to a spouse or child for their benefit during their lifetime (a ‘life interest trust’) it should be regarded as closely inherited, but not if left on discretionary trusts.

With the legislation now enabling a potential combined Nil-Rate Band of £900,000 (on current figures) on death, it is worth checking whether the full Nil-Rate Bands may be claimed.

February 2019

 

[Charles practised as a Solicitor and Higher Court Advocate before being called to the Bar, and specialises in tax, trusts, wills and probate.]

David Lidbury appointed as First-Tier Tribunal Judge

We are delighted to congratulate David on his appointment as Fee-paid Judge of the First-tier Tribunal assigned to the Health, Education and Social Care Chamber. David will continue to sit as a member of the RFU Discipline Panel and the Devon RFU Discipline Panel and also practice through chambers in his specialist area of Family Law.

Court of Appeal Grants Permission to Appeal in Livewest v Bamber 

The Court of Appeal has granted permission for a second appeal in the case of Livewest v Bamber [2018] EWHC 2454. This case concerns the correct interpretation and application of sections 21(1A) and 21(1B) of the Housing Act 1988 which apply to fixed term tenancies granted by registered providers of social housing. 

In a judgment of the High Court (Dingemans J) handed down on 27 September 2018 it was held that a 6 month notice in writing, as required by section 21(1B) of the Housing Act 1988, was not needed to end a fixed term tenancy of more than 5 years during the starter period of such a tenancy. 

Miss Bamber has been given permission to appeal against that decision by the Court of Appeal, who will consider later this year whether or not the approach taken by the High Court was correct. 

Miss Bamber is represented by Russell James of Magdalen Chambers and Cathy Morley of Shelter (Devon). 

We are celebrating having been selected to receive the Wellbeing certificate of recognition from the Bar Council

“Chambers is delighted to have been awarded the Bar Council’s Certificate of Recognition which acknowledges the efforts made by Chambers to support and promote the wellbeing of its members and staff” states Christopher Naish, Head of Chambers.  “We have always prided ourselves on achieving a healthy work-life balance and it is very rewarding for our policies and ethos to be endorsed by the Bar Council.”

“If you are interested in achieving a more balanced lifestyle and want to join a modern, progressive set based in the heart of Exeter, please don’t hesitate to contact Christopher Naish (Head of Chambers) to discuss your options.  Any such conversations will be treated confidentially.”

 

Christmas and New Year opening times 2018/2019

Monday, 24 December – 8.30am – 3.00pm

Tuesday, 25 December – Closed

Wednesday, 26 December – Closed

Thursday, 27 December – Closed

Friday, 28 December – 9.00am – 4.00pm

Monday 31 December – 9.00am – 4.00pm

Tuesday, 1 January – Closed

Wednesday, 2 January – 8.30am – 6.00pm

For Emergency Out of Hours contact please call our main telephone number and you will be transferred to our Out of Hours cover.

Members and staff wish you all a very Merry Christmas and a Happy and Prosperous 2019!

Telephone System Upgrade – Tuesday 4th December

We are having our telephone system upgraded in order to provide an even better level of service to you our clients. There should be little if any disruption to the service but in case and you are unable to contact us please email us at clerks@magdalenchambers.co.uk and we will endeavour to come back to you as soon as we are able.

Thank you for your patience.

Magdalen Chambers

Join us for Christmas Jumper day 14th December

Magdalen Chambers invite you to enjoy some Mulled Wine and Mince Pies on us in chambers on Friday 14th December between 3.00pm and 5.30pm.  Wear a Christmas Jumper and join members of chambers and clerks in raising money for Save the Children.

It’s the most magical time of year – fairy lights and baubles, snowmen and Christmas trees. And on 14 December, we want it all – on a jumper.

On Save the Children’s Christmas Jumper Day, all over the country, thousands of people will be donning their daftest, most wonderful woollies – all for a great cause.

Everyone who joins in and gives £2 to take part on 14 December will be making the world better with a sweater.

Members and Clerks of Magdalen Chambers hope to see you and your wonderful jumpers on Friday 14 December!

please email events@magdalenchambers.co.uk