IHTM06034 - General procedural matters: notifying amendments

If an estate ceases to qualify as an excepted estate, the personal representatives are required to deliver an account within 6 months of establishing that the estate ceased to qualify. There are two circumstances in which an estate may cease to qualify

• the value of the estate changes so that the chargeable estate now exceeds the threshold, or
• an Instrument of Variation (IHTM35011) is executed so that the devolution of the estate changes and the estate 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 exceeds the IHT threshold. Although the taxpayer may claim that a relief is due, the estate no longer qualifies as an excepted estate).

Where this is the case, the personal representatives should deliver a full IHT400 so the estate can be properly considered. 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 their claim for TNRB using form IHT217 and send it, together with a copy of form IHT205/C5 and C4, when telling us about the amendments. (These papers have to be sent to us because TNRB has to be formally claimed).