Applying for nil rate band transfer retrospectively (after probate granted)

Spindles_2

I applied for and was granted probate for my aunt on basis of excepted estate (i.e. under £325K) but later realised that the value was just over £325K (some investments/premium bonds I wasn't aware of). I didn't apply for nil rate band transfer for aunt's late husband at the time as didn't think it was needed (have copy of will, no probate, everything to aunt). 

I got conflicting advice from the probate helpline last year when I asked how to apply for the nil rate band retrospectively - one said to fill in a corrective account form, and another to do a full IHT return. 

I think I have two years from date of death to apply for the nil rate band transfer which is now fast approaching and I'm not sure what to do but have started filling in IHT400 and the other forms.  Is this the right thing to do?  Seems a lot of work when I don't think there should be any inheritance tax to pay (though I do have all the figures, and there is a house sale which will hopefully go through soon after two sales that didn't). 

I'd be very grateful for any advice. 

mybestattempt

It appears you need to make a corrective account on form C4:

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm10701

https://www.gov.uk/government/publications/inheritance-tax-corrective-account-c4

Keep_pedalling

mybestattempt said:

It appears you need to make a corrective account on form C4:

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm10701

https://www.gov.uk/government/publications/inheritance-tax-corrective-account-c4

That form is to correct information previously submitted on IHT 400 which the OP did not fill in because it is not require. It would still not be required if the TNRB had been used, so I don’t think a full return is required now. Because this does not impact the amount of tax that should be do I don’t think it is strictly necessary to report this to HMRC, but you should contact them for to confirm that. Hopefully at worst you will just have to write to them outlining the situation and that you wish to claim the RNRB. 

mybestattempt

Keep_pedalling said:

mybestattempt said:

It appears you need to make a corrective account on form C4:

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm10701

https://www.gov.uk/government/publications/inheritance-tax-corrective-account-c4

That form is to correct information previously submitted on IHT 400 which the OP did not fill in because it is not require. It would still not be required if the TNRB had been used, so I don’t think a full return is required now. Because this does not impact the amount of tax that should be do I don’t think it is strictly necessary to report this to HMRC, but you should contact them for to confirm that. Hopefully at worst you will just have to write to them outlining the situation and that you wish to claim the RNRB. 

Apologies, my mistake.

It seems a letter to HMRC will suffice in this case as the death was on or after 1January 2022:

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm06034

Spindles_2

Thank you both very much. I would never have found that! I will write a letter, very relieved I don't have to complete all the forms. 

Spindles_2

Hello again, following on from the above, I wrote a letter to HMRC in August 2024 detailing the revised amounts for the estate (net qualifying amount £346K), confirming that the conditions for the unused nil rate band had been met and my understanding that it was still therefore an excepted estate. Not had a response.  

Would it be reasonable to assume that has been accepted, and that I can now distribute the remaining amount left in the estate to the beneficiaries? Or should I try to check first?  Thank you