The estate is valued at £420,000. The deceased has the benefit of both the nil-rate band (£325,000) and the residential nil-rate band (£175,000) but no transferable bands (or other exemptions). Is it mandatory, in such a case, to submit IHT400 plus any relevant schedules to HMRC before submitting a probate application. Or, given that the estate value is covered by the bands referred to above, is the estate an “excepted estate” which would allow a probate application to be submitted without prior reference to HMRC? If there is no need to refer to HMRC how is the explanation of the availability of the two nil-rate bands put to the probate office on a digital application. Is it done by using the “other information” box?
The residential nil rate band is not taken into account or deducted for excepted estates, only any spouse or charity exemption, so this is not an excepted estate as its value exceeds £325k. Also I believe that the residential nil rate band needs to be “claimed” on the IHT400.
Maxine Higgins
TC Citroen Wells
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Thank you Maxine. I’m grateful to you for you swift and clear reply.