Inheritance tax: transferable nil rate band: overview
This practice note explains what the inheritance tax nil rate band is and how spouses and civil partners can benefit from the changes introduced by the Finance Act 2008, which permits a transfer of any unused nil rate band to the surviving spouse/civil partner's estate on death. It also explains why nil rate band discretionary trusts are still useful, notwithstanding these changes.
We are updating this note in the light of the Finance (No. 2) Bill published on 15 July 2015 (see Legal update, Finance (No. 2) Bill 2015 published: private client tax measures).