Which form to use IHT 205 or 4000?

3Snowy

Estate is under the £950k IHT allowances amounts we can use, NRB of £325 for both parents and RNRB of £150 for both parents = £950k but which form will make sure we claim all unused allowances as I know you have to claim them? Many thanks

xylophone

https://www.gov.uk/guidance/inheritance-tax-transfer-of-threshold

3Snowy

I understand we are entitled to £950k for utilising my late dads unused allowances as well as mums, do no IHT to pay but which form do we complete to ensure all relief is obtained. Is form 205 comprehensive enough? 

badger09

3Snowy said:

I understand we are entitled to £950k for utilising my late dads unused allowances as well as mums, do no IHT to pay but which form do we complete to ensure all relief is obtained. Is form 205 comprehensive enough? 

Start with IHT205.

Depending on precise circumstances, process will immediately tell you if it is no longer appropriate and you need to use IHT400 instead

Keep_pedalling

You will need IHT400, as you also need the supplementary forms 435 and 436  to the the RNRB and transferable RNRB.

3Snowy

I’m new to this forum so I thought I’d already sent another message but apparently not so here goes!  If a property is less than the £300k RNRB allowance for both my deceased parents is the unused RNRB amount lost or is it still available to use as part of the exemptions on the overall estate? ie if £20k RNRB remained can that be added to the NRB total or is it kept seperate?
Many thanks

Keep_pedalling

3Snowy said:

I’m new to this forum so I thought I’d already sent another message but apparently not so here goes!  If a property is less than the £300k RNRB allowance for both my deceased parents is the unused RNRB amount lost or is it still available to use as part of the exemptions on the overall estate? ie if £20k RNRB remained can that be added to the NRB total or is it kept seperate?
Many thanks

No, you cannot move over any unused RNRB to the other assets in the estate. Unless you mother died before April 6 this year the RNRB is £175k not £150k.

If your mother downsized from a more expensive property then you my still be able to claim the full allowance.

3Snowy

Mum died last year, so £475k for her and if we can include dads of 35years ago, I believe it’s £950k in total. We don’t have paperwork for dad though as didn’t need it then, any thoughts on this issue? Thanks

3Snowy

Can I send forms IHT 435 & 436 with IHT 205 and 217forms so that I claim all nil rate bands? There doesn’t seem to be anywhere to claim RNRB allowances on IHT 205.   Thank you 

poppystar

3Snowy said:

Can I send forms IHT 435 & 436 with IHT 205 and 217forms so that I claim all nil rate bands? There doesn’t seem to be anywhere to claim RNRB allowances on IHT 205.   Thank you 

You will need to complete IHT400 not IHT205 along with any other relevant schedules as well as 435 & 436. Also it would be IHT402 to claim the nil rate band. Basically 2** forms can’t be mixed with 4** forms. 

3Snowy

Thank you thank you for your advice but what neither I nor my sister can grasp is if an estate is under 1 million it is classed an excepted estate. It says you can complete IHT205.  My mums died in 2019 and is under this so amount so we want to fill in IHT 205, but we can’t claim RNRB (300k)on this form, only NRB (650k).  So how can anyone ever claim £950k allowance on this form!! Please advise. Thanks