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One nil rate band or two?

Shared from Tax Insider: One nil rate band or two?
By Mark McLaughlin, July 2021

Mark McLaughlin warns of a potential IHT problem when dealing with ‘nil rate band’ legacies in wills. 

The inheritance tax (IHT) allowance (or 'nil rate band') (£325,000 for 2021/22) is generally available to individuals. For married couples (and civil partnerships), the transferable nil rate band (TNRB) rules broadly allow claims for unused nil rate band of a deceased spouse (or civil partner) to be transferred to the survivor. 

The survivor's nil rate band can be increased by up to 100% or one additional nil rate band. Thus, a surviving spouse's nil rate band can increase to a maximum of £650,000 (n.b. ‘residence nil rate bands’ are not considered in this article).  

How many?  

Some individuals have wills with legacies (e.g. to a family discretionary trust) up to the amount of their

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