Good morning,
I am confused regarding the need to submit an IHT400 for an estate below £650,000 where there is a transferable NRB allowance following a recent Trust and Estates newsletter which states:
"Since changes to the excepted estate regulations in January 2022, more non-taxpaying estates have been able to apply for a grant of probate or confirmation as excepted estates without needing to first submit a full IHT account (IHT400).
However, HMRC has noticed common misunderstandings about eligibility and reporting for the various nil rate band (NRB) allowances. Most notably, agents should not take the residence nil rate band (RNRB) and any brought-forward (transferable) allowance into account when they consider if the estate is an excepted estate. The downsizing allowance or transferable allowance also do not apply automatically and need to be claimed in an IHT400."
However the excepted estates rules state:
"What counts as an excepted estate
An estate is usually an excepted estate if any of the following apply:
· its value is below the current Inheritance Tax threshold
· the estate is worth £650,000 or less and any unused threshold is being transferred from a spouse or civil partner who died first"
As the online probate application allows one to advance merely by ticking “Yes” to the question as to whether there is a predeceased spouse with an unused NRB allowance, I have assumed that that is sufficient to claim the transferable allowance. If it isn’t I would expect the application to ask for an HMRC code.
Can one of you please clarify the correct position.
I am fully aware that an IHT400 is needed if claiming a TRNRB