New Online IHT/Probate Application Process?

vonsworld

Hello

I dealt with Interitance Tax and Probate for an estate a few years ago, but believe the online process has changed since the beginning of this year?

In the old days if you believed there was no inheritance tax to pay, you submitted an online form to HMRC within a certain time limit. Then at a later stage (with no particular time limit) you applied separately online for Probate. I believe that now you apply for both together during the online Probate application?

Is this correct please, and since the inheritance tax and probate are now combined, is there a time limit on when this needs to be done?

Thanks
Robin

DJGill

for deaths after 1/12022 you can complete probate online on the basis that it is an 'excepted estate' and hence not subject to IHT. There are no IHT forms to complete now for such situations.

Keep_pedalling

The main change is that a lot less estates require you to submit any IHT returns. IHT 205 has become obsolete for deaths occurring after Jan1st.

vonsworld

Thanks for your reply

Since the estate I believe is not subject to IHT, I presume you can then take your time over completing the probate application?

I only ask because as I recall previously there was a strict time limit on submitting the forms to HMRC, even if you believed the estate was exempt.

DJGill

there is no time limit and you save & return to your application at any time (which is what I did recently) as information becomes available. After you have submitted the online application just send the original will by mail (if you have one). Date from sending Will to grant of probate took 5 weeks for me and grants arrived in the mail in 2/3 days.

DJGill

I only ask because as I recall previously there was a strict time limit on submitting the forms to HMRC, even if you believed the estate was exempt.

there's still a 6 month deadline for payment of IHT iirc if due

vonsworld

Thanks for your helpful replies.

One last question please. I need to claim the extra IHT allowance of £175000, because a property has been left to a child of the deceased. In the past apart from IHT 205 there was another form to fill in and claim this extra allowance.

Is this also now claimed during the online probate application?

DJGill

You don't need to claim anything. You just make your declaration as part of the on-line probate application. There is an IHT checker tool on the HMC website to help you double-check IHT is not payable. 

DJGill

https://www.gov.uk/valuing-estate-of-someone-who-died/estimate-estate-value#use-the-online-inheritance-tax-checker

shiraz99

vonsworld said:

Thanks for your helpful replies.

One last question please. I need to claim the extra IHT allowance of £175000, because a property has been left to a child of the deceased. In the past apart from IHT 205 there was another form to fill in and claim this extra allowance.

Is this also now claimed during the online probate application?

If you've applied the standard nil rate band and any NRB that has been inherited and this still takes you into IHT territory then yes I believe you do need to fill in the separate IHT form to apply the RNRB threshold.