Have I messed up probate application?

wifeathome

Applied for probate for father's estate. Probate office have raised a query stating the IHT values are above the limit of £325000 for an excepted estate. Net value for estate is £760,000. House is worth £600,000 and is being left to children. Mother died a year ago and left everything to her husband - my father. So two nil rate bands of £325,000 each and RNRB each of £175,000 means there is no IHT to pay. What have I done wrong?
On online form I stated gross value of £775000 for IHT, net value for IHT £760000, net qualifying value (what is that?) of £760000, gross value for probate £775000 and net value for probate £760000. Not really sure what the difference between those terms are. Should i have filed a form with HMRC first - even though there is no tax to pay. Do I need to fill in a form to tranfer unused NRB and RNRB or will probate office take this into consideration? I thought I understand this but I'm even more confused now.
Any help with my reply to the probate office will be appreciated.

poppystar

If you are claiming the residential NRBs you have to do a full tax return - IHT400 and all relevant parts. Did you just apply for probate and not submit IHT forms? It sounds like that might have happened so that is why they have contacted you. Have they told you what steps you should take next? 

wifeathome

poppystar said:

If you are claiming the residential NRBs you have to do a full tax return - IHT400 and all relevant parts. Did you just apply for probate and not submit IHT forms? It sounds like that might have happened so that is why they have contacted you. Have they told you what steps you should take next? 

Thanks, Poppy - you are a star! I think the issue here is that I thought - mistakenly - as there is no tax liability I wouldn't have to submit tax forms as an excepted estate. I can see now I need to do the forms: IHT400, IHT435, IHT436, and IHT402. It makes more sense now - when I submitted the probate forms a few months ago I don't think I was thinking straight! You've been so helpful - thank you!

Keep_pedalling

As well as the IHT return you will need to resubmit the probate forms 20 days after you have submitted the IHT forms. If you get stuck on any of it just come back here.

wifeathome

Keep_pedalling said:

As well as the IHT return you will need to resubmit the probate forms 20 days after you have submitted the IHT forms. If you get stuck on any of it just come back here.

Thank you -  the email from the Probate Office says: 

f you have answered questions 1 and 2 above ‘yes’ and the values provided in Q3C are above £325,000, please complete an IHT 400 and any supplementary forms and submit to HMRC. We will then await receipt of the IHT421 from HMRC directly.  Hopefully this means we can just submit the tax forms and HMRC will inform the probate office.