Inheritance Tax

Mubsie

Hi - Can anyone please assist with the rules on Inheritance Tax - Mum was widowed a long time ago but I have read on here that she/we might be able to use an additional allowance apart from the £325k and the £175k ( allowance on house left to children) .. the estate is quite a simple one and only 2 beneficaries so am going to try and do ourselves .. Any advise would be greatly appreciated..
Thankyou in advance 

Keep_pedalling

If your father left everything to your mother, then yes you can claim the full transferable NRB, unless he died before 13th Nov 1974 which was the date the spousal exemption came into effect.

if your mother was a home owner then the residential NRB should also be available.

Mubsie

Hi - Thanks for the response .. Its all such a grey area and a minefield as we dont want to do anything wrong.  So forgive me if im asking the same question .. Apart from the Total £500k allowance without the widow extra bit - how much is the extra bit ? .. as the estate isnt much more but again i dont want to do anything wrong ... 

Keep_pedalling

Assuming the full transferable NRB is available you have an additional £325k to play with. The RNRB is also transferable, so a married couple can leave up to £1M IHT exempt.

Mubsie

Hiya .. Thankyou so much ... When dad died everything went to Mum and she didnt inherit anything else from anyone so I think we should be ok .. Its not much over the "normal" £325k and the £175k ( 500k) ... Just needed some advice as its all very confusing ... Sorry to ask another question .. Any idea what forms need to be filled in from the gov website ?? I know we cant apply for probate until we have done some sort of forms .. thank god for helpful people !! :-) 

jsatellite

If you're claiming residence NRB, you'll need to fill in IHT400 and IHT435 (plus other relevant schedules). Otherwise you can start with the much shorter IHT205 - it will tell you if you have to switch to IHT400.

p00hsticks

Mubsie said:

Hiya .. Thankyou so much ... When dad died everything went to Mum and she didnt inherit anything else from anyone so I think we should be ok .. Its not much over the "normal" £325k and the £175k ( 500k) ... Just needed some advice as its all very confusing ... Sorry to ask another question .. Any idea what forms need to be filled in from the gov website ?? I know we cant apply for probate until we have done some sort of forms .. thank god for helpful people !! :-) 

The exact form you need for probate will depend on whether any inheritance tax is due, I think.

If you start an online application then I think it will redirect you to the correct form if at any point the information you give indicates it needs to be done on paper.

Before you apply for probate itself you need to provide a valuation of the estate so the first step is to gather all the information about the value of any bank accounts, savings, property, investments, debts etc and then compelte the online form. 

https://www.gov.uk/valuing-estate-of-someone-who-died

Have a read through this guidance. Even if you are able to complete the forms online I recommend going through the paper ones first to see what sort of informatino you need to provifre and make sure you have it all available.

https://www.gov.uk/government/collections/probate-forms

Mubsie

Hi All .. Thankyou so much for the help and advice ... I will go on the gov website and also there is a helpline I think .. Cant understand why they dont make it plain and simple ... 

p00hsticks

Mubsie said:

Hi All .. Thankyou so much for the help and advice ... I will go on the gov website and also there is a helpline I think .. Cant understand why they dont make it plain and simple ... 

To be honest, I did find it quite plain and simple - although when you get a lot if different situations (such as whether or not IHT is due, whether the person is entitled to any allowances and if so which etc) then there are gonig t obe a few differnt routes to take.

Mubsie

I agree - Its all about each individual situation -  But many thanks for all the assistance ... I will get there :-)