IHT allowance

System

This discussion was created from comments split from: Transfer of IHT allowance between married couples.

Tixallman

Hi, I am the Executor for my Father's will. He died this year. My mother died in 2021 and they had been married for 59 years. I have filled in IHT Probate forms 400, 402, 435, 436, and inserted date of marriage, place of marriage, everything but the forms just WILL NOT attach the £1million allowance due to married couples. If it did, he pays no tax because he wasn't a millionaire. But it keeps attaching the single person's allowance of £500,000, in which case the tax is enormous. I am going round in circles. It's been going on for months. What am I missing? Has anyone else come across this problem? All of my parents assets were jointly owned so technically probate was not needed when my Mother died. Could this be the problem? I am baffled....

Keep_pedalling

Tixallman said:

Hi, I am the Executor for my Father's will. He died this year. My mother died in 2021 and they had been married for 59 years. I have filled in IHT Probate forms 400, 402, 435, 436, and inserted date of marriage, place of marriage, everything but the forms just WILL NOT attach the £1million allowance due to married couples. If it did, he pays no tax because he wasn't a millionaire. But it keeps attaching the single person's allowance of £500,000, in which case the tax is enormous. I am going round in circles. It's been going on for months. What am I missing? Has anyone else come across this problem? All of my parents assets were jointly owned so technically probate was not needed when my Mother died. Could this be the problem? I am baffled....

It sounds like you may have made an error somewhere. What is the total value of his estate? 

PS. For future reference if you have questions to ask you need to start a new thread rather than tack it on to someone else’s thread. I have asked the moderators to split this from the original thread. 

Tixallman

Total Value of the estate is £757,000 .  But none of the online forms will allow me to enter anything more than the £325,000 and £175,000 property bands. So the single persons limit is the only limit the fields will accept. The home was valued at £165,000, less than the married residence allowance but his overall allowance should still be £815,000.

MSE_ForumTeam2

Hi @Tixallman

We have created this new thread for your question

Keep_pedalling

Tixallman said:

Total Value of the estate is £757,000 .  But none of the online forms will allow me to enter anything more than the £325,000 and £175,000 property bands. So the single persons limit is the only limit the fields will accept. The home was valued at £165,000, less than the married residence allowance but his overall allowance should still be £815,000.

Can you tell exactly which box numbers you are trying to enter these numbers on please? 

You don’t need to fill in IHT 436 if the home value is only £165k as the value is not high enough to be able to claim more than one RNRB unless the downsizing rule comes in to play.