Grant of probate question

TerencePhilips

I have a question regarding what happens after a grant of probate has been issued. 

If the grant has been issued does this mean HMRC with regards to IHT have no interest in the estate and funds can be split between siblings etc?
reason I’m asking is the grant has been issued but the solicitors are saying they still haven’t had anything back from HMRC?
i was under the impression once the grant had been issued by the probate court it was due to HMRC also declaring that they had no further interest in the estate ?

anyone shed any light on this please
thanks TP

Flugelhorn

Are the solicitors referring to income tax rather than IHT? I don't remember getting anything specific from HMRC after I applied for probate. 

TerencePhilips

The way they replied was HMRC still haven’t sent through ‘final clearance’ yet regarding IHT? Which to me doesn’t make sense as surely the grant couldn’t be issued?  I know the application process changed in Jan 2021, not sure if this has made a difference in the process?

Flugelhorn

I thought that was the case too  - all a bit odd and I don't know the answer, hopefully somebody does 

naedanger

See pages 58 and 59 of the following link:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/864520/Guide_to_completing_your_Inheritance_Tax_account__IHT400_notes__-_English.pdf
For example:
What happens when I get a grant?
When you’ve got the grant, it does not mean that you’ve paid all the Inheritance Tax and interest on the estate. If you sent us the form before the grant, we look at the details you’ve given and if there are no obvious errors, we’ll accept the tax that you’ve shown us is due.
The Inheritance Tax on the estate may change
Once we’ve returned Schedule IHT421, ‘Probate summary’, or form C1, ‘Inventory’ we’ll look at form IHT400 in more detail. We may ask you questions to help us understand what you’ve said on the form and any schedules. We may discuss the value of any assets in the estate and question whether any debts are properly deducted. We’ll look carefully at any deduction for exemptions, reliefs and exclusions you’ve made. We may also send you statements that show you the tax and interest you must pay, particularly if you’ve said that you wish to pay some of the tax by instalments.

TerencePhilips

But if there is no IHT due as per the forms submitted where does that leave me with the original point? As mentioned doesn’t make sense, to me anyway. Suppose I’m looking for anyone that’s had the grant, then HMRC clearance afterwards ? Or similar 

xylophone

Has the solicitor applied for (and so is awaiting) a clearance certificate?
https://www.gov.uk/government/publications/inheritance-tax-application-for-a-clearance-certificate-iht30

TerencePhilips

xylophone said:

Has the solicitor applied for (and so is awaiting) a clearance certificate?
https://www.gov.uk/government/publications/inheritance-tax-application-for-a-clearance-certificate-iht30

As far as I’m aware yes as there was no IHT due on the estate. Or would they need to in the first place? I have contacted them but they play the CV19 card and say we’ll get back to you. I’m just trying to better understand the process so I can ask the right questions I guess.

xylophone

https://ca.practicallaw.thomsonreuters.com/a-022-4193?transitionType=Default&contextData=(sc.Default)&__lrTS=20180111142344898&firstPage=true

Relative was exor of an estate where there was a substantial IHT liability - HMRC did not challenge the figures provided and no clearance certificate was applied for.

However, you are using a professional exor - see link above.

IYKYN

Can I as, how long did you grant take to come through after sending the paperwork off?

TerencePhilips

xylophone said:

https://ca.practicallaw.thomsonreuters.com/a-022-4193?transitionType=Default&contextData=(sc.Default)&__lrTS=20180111142344898&firstPage=true

Relative was exor of an estate where there was a substantial IHT liability - HMRC did not challenge the figures provided and no clearance certificate was applied for.

However, you are using a professional exor - see link above.

thanks for this, very interesting, i will ask the question if this has been applied for and see what that brings. thanks for the heads up.