IHTM43026 - Calculating the transferable nil rate band: how to reflect the increased nil rate band on COMPASS

When a case is data-captured, details of the transferable nil rate band (TNRB) claim are entered on COMPASS (IHTM31101). This will include

• surname, forename and date of death of the first deceased,
• the nil rate band available on their death, and
• the amount of the nil rate band that was unused.

COMPASS will calculate the amount of TNRB and will apply the uprated nil rate band in the correct way to all calculations raised on the case.

In caseworking, the TNRB button will be active on the Estate Details screen. Clicking on this button will reveal the TNRB table. You can either add another or a new record, or amend or delete the existing data. COMPASS will treat any amendment to TNRB data as an adjustment to the estate and will prompt you to raise a calculation. 

If you are dealing with a case where one of the top slice charges arises, for example, the cessation of conditional exemption or sales of woodlands granted woodland relief (IHTM43044) you should work out the correct liability and check that COMPASS is giving the right answer.  These charges will be very rare and COMPASS will not handle every possible situation. You may need to adjust the figures in COMPASS to get the correct result. Where you have to do this you should explain the position fully to the taxpayer in a letter.