Inheritance tax and Nil rate band

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I have sent off my IHT 200 form to the tax people following the death of my mother.

My father died in 1976 and my mother in 2008. According to my calculations the estate which is over 300k but less than 600k should pay no IHT because of the nil rate band transfer rule.

I was a bit concerned because there was a mistake on the form I was sent out which even the help desk hadn't realised (although it was known) and the website hadn't been updated.

My question is wether anyone knows how long it should take to get probate (I have been for the interview) and what can I do to speed it up. They have had the form since 15 May?

localhero

If you've had the interview, then probably within about 4 weeks or so.

There's not a great amount you could do - the legal machinery moves at a sedate pace.

hardpressed

I queried with the tax people if the nil rate band allowance from a death in 1989 would be the £300,000 and was told that it's the inheritance tax rate at the time of the first death, so in this case £108,000. Quite a shock when I had thought the total nil rate would be £600,000.

sloughflint

hardpressed wrote: »

I queried with the tax people if the nil rate band allowance from a death in 1989 would be the £300,000 and was told that it's the inheritance tax rate at the time of the first death, so in this case £108,000. Quite a shock when I had thought the total nil rate would be £600,000.

No this is wrong.
Current single allowance is £312 000 so £624 000.You thought correctly ( except using last year's rates)
Will look up link.
http://www.hmrc.gov.uk/cto/iht/tnrb.htm

Brenny

This is a good link. Actually needs further explanation here though. If first person to die used 20% of their allowance (based on the old rate), the allowance put on to the estate of the second person is 80% of the new allowance. For example, person 1 had an estate of £20,000. The nil band allowance was, at that time, £100,000. £20,000 / £100,000 = 20%. Left over allowance is 80%. So allowance on second death is nil rate band at time plus 80% of nil rate band at (same) time.