IHT Calculator - Confusion for Probate

dan411

Ah yep that makes sense, thank you for clarifying that, that’s really help. It’s a mindfield. 

As you see from my earlier post, I don’t need to pay inheritance tax, but the calculation says I do. Because of this reason do I need to get an IHT reference number or can I just start the IHT 400 form? 

Also do I need to complete a PA1P form as well? 

When I start to apply for probate online, it says that I need to wait for my unique probate code which I gather you get once IHT400 is completed and sent off with all relevant schedules? 

Thank you 

polar_pig

dan411 said:

Hi @polar_pig, a question which I am hoping you can help with, when it come to IHT on gifts. 

If a gift was given as 1 cheque but for 2 people, so help with a deposit for a house, then can you take of 2x £3000 as it was for both of them, or because it only went in one account, you can only do 1? 

Thank you 

It seems like your question has been well addressed by Notepad_Phil. The only thing I could add is the possibility that the gift could have been made from "excess income" where the testator made the gift from income that exceeded the testators other expenditure in those tax years. However, you may need to do a lot of digging through paperwork to prove that and then check the details against the gift rules.

However, gifts that exceed the annual gift allowance may not impact the IHT if the excess doesn't raise the net estate above the applicable nil rate bands. In such a case extra effort to utilise other gift allowances is unjustified.

dan411

Brilliant, thank you, that all makes sense. 

Then just to follow on from all this and incase it got lost within the posts: 

As you see from my earlier post, I don’t need to pay inheritance tax, but the calculation says I do. Because of this reason do I need to get an IHT reference number or can I just start the IHT 400 form? 

Also do I need to complete a PA1P form as well? 

When I start to apply for probate online, it says that I need to wait for my unique probate code which I gather you get once IHT400 is completed and sent off with all relevant schedules? 

Thank you 

polar_pig

Yes, you'll need to do a PA1P as well to apply for probate.

Also, see this:
https://www.rixandkay.co.uk/2024/01/25/hmrc-revises-probate-application-procedure/

dan411

Thank you, 

and would I need an IHT reference number if I know no tax is due but the calculator says there is? 

Thank you for your help. 

dan411

Hi all, 

just trying to work out if I need the IHT reference number. The calculator says we need to pay tax, but once we have taken off allowances we don’t, so I am unsure if I should get one or not? 

Thank you for your help. 

The_Governor

Could I get a bit of help on the question "What was the value of tax free allowance the person who died inherited?"

I'm struggling to make sense of what it's asking.

The situation is my MIL has just died, she's got a house worth about £325k, plus some cash of about £38k.

Her husband died 12 years ago and she inherited everything from him

So, is the quesiton above asking what tax free allowance she inherited from her husband when he died 12 years ago? Which to my understanding would be £175k, as per the Residence Nil-Rate Band

Just want to sense check I'm right!

Keep_pedalling

Her estate has both his transferable NRB and RNRB, so £1M in total. You obviously don’t need all that so just used her NRB and the transferable NRB. Using either residential NRB will also mean you would need to file a full IHT return as well.