IHT402

Confused_2024

Hi there

I'm completing inheritance tax forms as the executor of my mums will and as her sole beneficiary. She had no IHT to pay on the death of my dad 2 years ago and ownership of the house passed to her. I am now due to inherit the house and her assets. I need to complete a full return as I received a gift from her during the previous 7 years.

I'm working my way through all the forms but am unsure about form IHT 402 box 12. I'm not sure if I need to leave this as 0 or enter £175000 for RNRB passed to her here. I've entered the nil rate band passed on to her OK in box 9 and the value of the shared bank account they had in box 14.

I'm not sure if the 175k RNRB transferred from my dad to my mum will be included in form IHT 436 so therefore I don't need to include it in IHT 402 or if they're asking about slightly different things. I'm guessing it will become clear once I've completed all the forms but just in case, advice would be appreciated.

Keep_pedalling

Receiving a gift in the previous 7 years does not in its self require you to do a full IHT return, only if that gift takes her estate over her NRB + any available transferable NRB from your father. If he left everything to your mother you don’t need to do a return unless her estate exceeds £650k including your gift.

if you do actually need to do a return then you put £0 in that box as none of your father’s RNRB was used.

Confused_2024

Thanks, I do need to declare the gift/complete a full return, as it was over the amount allowed, according to the notes. He did leave everything to my mum including the shared house, so from what you've said I need to enter 0 in that box. Thank you for your help!

buddy9

Keep_pedalling said:

Receiving a gift in the previous 7 years does not in its self require you to do a full IHT return, only if that gift takes her estate over her NRB + any available transferable NRB from your father. If he left everything to your mother you don’t need to do a return unless her estate exceeds £650k including your gift.

if you do actually need to do a return then you put £0 in that box as none of your father’s RNRB was used.

One of the criteria which prevents an estate being an excepted estate is where the aggregate value of chargeable transfers within 7 years exceeds £250,000.

Hoenir

Cutting Tax Board maybe a better place to discuss your issue. 

Confused_2024

I'm not looking to cut tax and I know that I don't need to pay IHT but I do want to be sure to complete the return correctly..!

Keep_pedalling

Confused_2024 said:

Hi there

I'm completing inheritance tax forms as the executor of my mums will and as her sole beneficiary. She had no IHT to pay on the death of my dad 2 years ago and ownership of the house passed to her. I am now due to inherit the house and her assets. I need to complete a full return as I received a gift from her during the previous 7 years.

I'm working my way through all the forms but am unsure about form IHT 402 box 12. I'm not sure if I need to leave this as 0 or enter £175000 for RNRB passed to her here. I've entered the nil rate band passed on to her OK in box 9 and the value of the shared bank account they had in box 14.

I'm not sure if the 175k RNRB transferred from my dad to my mum will be included in form IHT 436 so therefore I don't need to include it in IHT 402 or if they're asking about slightly different things. I'm guessing it will become clear once I've completed all the forms but just in case, advice would be appreciated.

None of his RNRB was used so you need to put zero in box 12 on IHT402, and if required you need to use IHT436 to claim the TNRB. 

Confused_2024

Another Q..

If the house first passes entirely to mum after dad's death, then it passes fully to me on her death, does that mean None of the transferable RNRB was used on the house passing to my mum, so I enter No to Q6 on form IHT436 and then none of the RNRB is used on her passing the house to me, so I enter Yes to Q13 on form IHT435 and enter the amount as 175k for Q14?

And if this is correct, does this cover me claiming for both lots of 175k RNRB? Are there any other Qs that I need to make sure to complete on either form to ensure that I'm claiming 2x175k at the end?

Thanks again in advance!

Keep_pedalling

Confused_2024 said:

Another Q..

If the house first passes entirely to mum after dad's death, then it passes fully to me on her death, does that mean None of the transferable RNRB was used on the house passing to my mum, so I enter No to Q6 on form IHT436 and then none of the RNRB is used on her passing the house to me, so I enter Yes to Q13 on form IHT435 and enter the amount as 175k for Q14?

That is correct

And if this is correct, does this cover me claiming for both lots of 175k RNRB? Are there any other Qs that I need to make sure to complete on either form to ensure that I'm claiming 2x175k at the end?

Thanks again in advance!

You have to complete Q7-15 on IHT436 & Q15 and all the other appropriate Qs on IHT435.