IHTM06034 - General procedural matters: notifying amendments
If an estate no longer qualifies as an excepted estate, the personal representatives must deliver an account within 6 months of establishing that the estate ceased to qualify. There are three circumstances in which an estate may no longer qualify
- the value of the estate changes so that the chargeable estate is now more than the nil rate band, or
- an Instrument of Variation (IHTM35011) is executed so that the way the estate devolves changes and the estate then fails to qualify. For example, relievable property that previously passed to the spouse or surviving civil partner is redirected to the children and the value then exceeds the nil rate band. Although the taxpayer may claim that a relief is due, the estate no longer qualifies as an excepted estate, or
- where the estate is an exempt excepted estate (IHTM06013) and the death is on or after 1 April 2014, a liability which was allowed as a deduction is not discharged from the estate with the result that the chargeable estate now exceeds the nil rate band.
Where this is the case, the personal representatives should deliver a form IHT400 so we can consider the estate properly. Any claim for transferable nil rate band (TNRB) can be made on form IHT402 in the normal way.
Where subsequent amendments take the gross value for the estate above the single nil rate band the estate may still qualify as an excepted estate if TNRB is available. Provided the estate of the first deceased person satisfies the relevant conditions (IHTM06024), the personal representatives can make a claim for TNRB.
For deaths on or after 1 January 2022, in England, Wales and Northern Ireland, they should write to HMRC with details of the amendments, confirm they are claiming against the estate the unused proportion of the Inheritance Tax (IHT) nil rate band of a pre-deceased spouse or civil partner of the deceased, and provide the name and date of death of the deceased together with the three IHT values (IHTM06031) originally submitted to obtain Probate. In Scotland, they should complete form C4(S).
For deaths before 1 January 2022, they should use form IHT217 and send it, together with a copy of form IHT205/C5 and C4 (IHTM10701)/C4(S) (IHTM05092)/X-1 (IHTM05095), when they tell us about the amendments. These forms must be sent to us because TNRB has to be formally claimed.