Inheritance tax forms needed query

Paddington66

Hello.  I wonder if anyone can advise?  My sister and I are applying for probate for my father’s estate and would like to ensure we use the correct forms, but the guidance seems unclear over Principal residence relief impact on form to fill out.  For arguments sake say the estate is worth £700k including his home at £500k which was being let over the past year.  Our mother passed away in 2009 with all assets passed to my father through SSE.

So there will be no IHT to pay (allowance 325*2 =650) add residence relief of 175*2 (seems strange but seem to get despite not existing in 2009) = 350 so total IHT allowance 900 well over the estate value.

I thought we needed to complete 205 as no IHT to pay rather than 400 but it’s all very ambiguously worded.

So far as I can see we need
205 or 400 (??)
217 claim to transfer unused nil rate band with 205 or 402 with 400
If 400 then IHT 405 (?)
iht409 for pensions?  He had a company one which ceased from the date of death with no remainder to be paid so not clear here.
IHT 435 claim for residence nil rate band transfer if 400 again

It seems like a lot more forms need completion if we need to complete IHT400 despite not being liable for tax in the end.

so our main query is to clarify the main form needed, and then if 400 whether all the extra ones are needed.  There are no shares etc

thanks P66

xylophone

https://www.gov.uk/government/publications/claim-to-transfer-any-unused-residence-nil-rate-band-iht436
https://www.ibblaw.co.uk/insights/blog/inheritance-tax-brief-guide-completing-forms may help.

Savvy_Sue

We found we had to complete a lot of forms, even though no tax was due. Mostly we answered one question, and that was it ... 

badger09

When I was executor for my late sister's account in 2018, I started off completing IHT205 but it very soon became clear that I had to complete IHT400 instead, despite the fact that ultimately there was no IHT to pay.

May I suggest you do the same?

Paddington66

Thanks all.  Got through to the helpline and it seems £650k is the cutoff point.  So if you need to use the property exemption you need to complete iht400 despite no IHT being needed, if not and the dual nil rate bands are enough then the 205 suffices.

ruth13babe

xylophone said:

https://www.gov.uk/government/publications/claim-to-transfer-any-unused-residence-nil-rate-band-iht436
https://www.ibblaw.co.uk/insights/blog/inheritance-tax-brief-guide-completing-forms may help.

Useful read, thank you.
Does anyone know if IHT400 can be submitted online or does it and the relevant schedules need to be printed out and posted?
Thanks.

badger09

ruth13babe said:

xylophone said:

https://www.gov.uk/government/publications/claim-to-transfer-any-unused-residence-nil-rate-band-iht436
https://www.ibblaw.co.uk/insights/blog/inheritance-tax-brief-guide-completing-forms may help.

Useful read, thank you.
Does anyone know if IHT400 can be submitted online or does it and the relevant schedules need to be printed out and posted?
Thanks.

You can certainly complete IHT400 and associated schedules online, but as far as I'm aware, you still have to print & post them.

Happy to be corrected.