IHT Reference Number letter - strange wording

rnem170

Hi All,

Just received the IHT reference number in the post from HMRC.  There are a couple of odd things....

1. The date if issue is 18/04/20 (should of course be 18/04/23).  I'm guessing that isn't going to cause problems?
   
   
2. The last sentence says "There is a 24 month time limit for transferring any unused Inheritance Tax nil rate band from the estate of a spouse or civil partner.  For more information go to www.gov.uk/guidance/inheritance-tax-transfer-of-threshold."
   
   I'm very confused.  Following that link, there is nothing about a 24 month limit, and they even give you an example where there is 4 years.  Has something changed?  If there is a 2 year limit, I am going to have to pay tens of thousands in IHT.

summer_daze009

The website link they gave you was from 2016, updated in 2019. Here is an up to date page published in February of last year that shows you have 2 years from the death to inform HMRC if you need to transfer the unused tax free allowance

https://www.gov.uk/guidance/transferring-unused-basic-threshold-for-inheritance-tax#:~:text=Everyone%20has%20the%20same%20basic,surviving%20spouse%20or%20civil%20partner.

ossie48

It really is a poor show. Our date of issue is shown as 06/03/20 and we applied in March 2023.
I've had to ring the IHT helpline on several occasions and on both occasions they lacked the knowledge about two quite major issues relating to the IHT 412/416. Anything slightly complicated appears beyond the scope of those answering the phone.

Marcon

rnem170 said:

Hi All,

Just received the IHT reference number in the post from HMRC.  There are a couple of odd things....

1. The date if issue is 18/04/20 (should of course be 18/04/23).  I'm guessing that isn't going to cause problems?
   
   
2. The last sentence says "There is a 24 month time limit for transferring any unused Inheritance Tax nil rate band from the estate of a spouse or civil partner.  For more information go to www.gov.uk/guidance/inheritance-tax-transfer-of-threshold."
   
   I'm very confused.  Following that link, there is nothing about a 24 month limit, and they even give you an example where there is 4 years.  Has something changed?  If there is a 2 year limit, I am going to have to pay tens of thousands in IHT.

Looking at your other posts, I think you're worrying about nothing (at least in tax terms). The 2 year period runs from the date of your mother's recent death, not her husband's death in 2019.

rnem170

summer_daze009 said:

The website link they gave you was from 2016, updated in 2019. Here is an up to date page published in February of last year that shows you have 2 years from the death to inform HMRC if you need to transfer the unused tax free allowance

https://www.gov.uk/guidance/transferring-unused-basic-threshold-for-inheritance-tax#:~:text=Everyone%20has%20the%20same%20basic,surviving%20spouse%20or%20civil%20partner.

That link explains it perfectly.  

"You can only transfer threshold if:

• the couple were married or in a civil partnership when the first death occurred

• you send the request to HMRC within 2 years of the death of the surviving spouse or civil partner"

Their letter is badly worded, they can't put the right date on it, and the link they give you is wrong.  :-(