HMRC Probate demanding IHT400 form

justme8786

My mum died last November, I am in the process of sorting out her finances. I calculated the total value of her estate, and it is under £500k threshold (inluding the residence nil rate band because a house is being passed on). I submitted this all to HMRCE Probate, and thought that would be the end of that, but they are now demanding that I complete the IHT400 form. 

I do not understand why, as it states directly on the GOV website that one only needs to complete the form if there is Inheritance Tax due to pay. There have now been a chain of emails going back and forth where I ask them for an explanation at the very least, and they are not particularly helpful, I am very confused now, please could someone help explain why they want this from me?

justme8786

justme8786 said:

My mum died last November, I am in the process of sorting out her finances. I calculated the total value of her estate, and it is under £500k threshold (inluding the residence nil rate band because a house is being passed on). I submitted this all to HMRCE Probate, and thought that would be the end of that, but they are now demanding that I complete the IHT400 form. 

I do not understand why, as it states directly on the GOV website that one only needs to complete the form if there is Inheritance Tax due to pay. There have now been a chain of emails going back and forth where I ask them for an explanation at the very least, and they are not particularly helpful, I am very confused now, please could someone help explain why they want this from me?

*HMRC intended to write

Keep_pedalling

Even though no IHT is due, to claim the residential NRB a full IHT return is required. Unlike the standard NRB it is not automatically applied to an estate.

Was your mother a widow? 

justme8786

Keep_pedalling said:

Even though no IHT is due, to claim the residential NRB a full IHT return is required. Unlike the standard NRB it is not automatically applied to an estate.

Was your mother a widow? 

I see, thank you. The GOV website is misleading then, no? Or I misunderstood. I am doing this all myself without the help of a solicitor and it seems silly that I will have to fill the whole thing out when I don't owe anything.

No, she was divorced.

Hoenir

Are close to the limit are you ? Who valued the property ( and other assets of note ) within the estate ? 

Keep_pedalling

justme8786 said:

Keep_pedalling said:

Even though no IHT is due, to claim the residential NRB a full IHT return is required. Unlike the standard NRB it is not automatically applied to an estate.

Was your mother a widow? 

I see, thank you. The GOV website is misleading then, no? Or I misunderstood. I am doing this all myself without the help of a solicitor and it seems silly that I will have to fill the whole thing out when I don't owe anything.

No, she was divorced.

Yes it is a bit of a pain, but you should be able to do it yourself without too much trouble.a look at IHT 400 form  to see what supplementary sheets you will need.

https://assets.publishing.service.gov.uk/media/67efae25ba15e341025cef80/IHT400_04_25.pdf

You will definitely need the following.

IHT435 to claim the RNRB
IHT405 for the property
IHT406 for banks and building societies accounts
IHT406 for household and personal goods

justme8786

Hoenir said:

Are close to the limit are you ? Who valued the property ( and other assets of note ) within the estate ? 

Depends on your definition of close but no I wouldn't say so. I got the property valued by 3 separate Estate Agents and averaged the results. I valued all the other parts myself.