IHT Low Value Estate needing transfer of unused nil rate band - Form(s) submission

At page 2 et seq, HMRC’s Guide to Completing Your Inheritance Tax Account (the “Guide”) defines a Low Value estate in a way which includes an estate of the second spouse to die needing transfer of unused NRB from the estate of the first spouse to die to make no IHT payable. I could not find any guidance on (1) where to send the IHT402 to claim transfer of the NRB and (2) what to accompany the submission with if the submission has to be made to HMRC. The absence of guidance gives the impression that the IHT402 goes with the PA1P to the probate court office. I rang the IHT HelpLine to check and was told that an IHT400 (without schedules) must be submitted to HMRC with the IHT402. If that is so, would it not have been more sensible to retain use of IHT205 since its 8 pages used to be far simpler for the DIY-er to complete than the 17 of IHT400? That is what prompts the first of my two points below. If the advice I got is correct it implies that the submitter must await a letter from HMRC with a code before filing the PA1P but that form does not include submission of an IHT402 in its question 7.2. May I please: (1) Be told whether the information referred to above which I was given orally by the IHT Helpline is correct and, if not, what is the correct procedure? (2) Encourage early modification of the Guide to make the procedure explicit? (3) Ask that, unless I am incorrect, you invite the probate court office to revise its PR1A?

Hi,
Please contact the Inheritance Tax team for advice:
Inheritance Tax: general enquiries
Thank you.

The original question was really helpful as I am struggling with the same issues. The reply on the other hand was much less helpful. @Coleman - did you eventually get some answers please?

For Peter Harrison I have not resolved the problem. I await a reply to my postal enquiry of HMRC Birmingham dated 3 December 2024.

I'm dealing with the same scenario currently and today called HMRC IHT helpline and was told categorically that I do not need to submit IHT402 or IHT400 as it counts as an exempt estate. I challenged this as the notes for IHT400, while not very clear, do seem to define exempt estate for low value estate as being either below individual threshold (£325k) or double that (£650k) if transferring an unused spouse's and also refer to needing to submit IHT402 and reduced IHT400. I then called Probate (HMCTS) and they also assured me that I dont need to fill in IHT402 (and IHT400) as I've declared on Probate that am claiming spouse's unused allowance (and the estate thus comes under £650k limit). I asked again to be sure and again was assured I dont need to do form IHT402.

After getting confirmation from both HMRC and HMCTS, I did find this page on Gov site which does confirm that if estate is excepted, the claim to transfer unused NRB from deceased spouse is covered by Probate application and no additional forms required. https://www.gov.uk/guidance/transferring-unused-basic-threshold-for-inheritance-tax - Scroll down to section titled "Where full details are not needed — excepted estates" - if you don't have the full NRB to transfer, it no longer counts as excepted and so then you do use IHT402 and IHT400.

For Peter Harrison I have not had a reply from HMRC to my enquiry dated 3 December 2024 and have given up hope of getting one. I emailed the probate service on 8 March drawing their attention to HMRC's Staff Manual at IHTM06025. On 2 April they told me to submit an IHT400 plus IHT402 to HMRC. The crux of the problem is that sections 8A and 8B Inheritance Tax Act 1984 clearly to require a claim to transfer to be adjudicated by HMRC and the only mechanic for making a claim where death is on or after 1 January 2022 appears to be IHT402