In his Pre Budget Report on 9 October 2007 the Chancellor announced that effective from that date any unused portion of someone’s Nil Rate Band on their death can be passed on to their spouse/civil partner to use on their death.

This did not increase the Nil Rate Band for an individual but it did make up to 2x the Nil Rate Band available on the death of the surviving partner – something that could have been done previously, but only by prudent planning and will writing.

Widows and widowers of people who died before 9 October 2007 are able to take advantage of this change as well.

However, the transfer of the Nil Rate Band is not automatic and has to be claimed after the survivor’s death and proof will be needed of how much of the Nil Rate Band was use on the first death. Therefore it is important for probate to be carried out efficiently on all future deaths with accurate records kept.”