Excepted Estate

This is probably a really silly question but do we really need to complete an IHT400 where the estate is valued below £3m and residue passes to the surviving spouse, apart from 3 cash legacies of £5000 each?

The guidance seems to suggest that all of the estate has to pass to the spouse to be excepted and therefore we need to complete an IHT400.

Many thanks

Anne Duguid

IHTM06013 would suggest that you do not as the estate is less than £3m and the value of the estate after the spouse Exemption is less than the NRB

1 Like

My understanding is that the new regulations mean that an estate will be excepted (not require a full IHT400) even in cases where you are only transferring a portion of a transferable NRB provided value below £3million and exempt due to spousal exemption.

(This does not include or apply to RNRB / transfer of RNRB).

1 Like

Thank you Nigel and Skippy, I had a similar question with an estate that left a percentage to a charity that pulled the chargeable value below £325k. That IHT Manual reference makes it clear. Why don’t they reflect that on the .gov website?