IHTM06012 - Rules about excepted estates: low value estates
These are estates where there can be no liability to tax because
the gross value of the estate does not exceed the IHT nil rate
band.
The conditions for these estates are that
- the deceased died on or after 6 April 2004, domiciled in the United Kingdom, and
- the gross value of the estate, including
- the deceased’s share of any jointly owned assets
- any specified transfers
- any ‘specified exempt transfers’
does not exceed the nil rate band, where (for deaths on or after 1 September 2006)
- if the estate includes any assets held in trust, they are held
in a single trust and the gross value does not exceed
£150,000,
- if the estate includes foreign assets, their gross value does
not exceed £100,000,
- if there are any ‘specified transfers’ (
IHTM06018) their chargeable value does
not exceed £150,000,
- the deceased had not made a gift with reservation of benefit,
and
- a charge does not arise under IHTA1984/S.151A-C (IHT charge on an alternatively secured pension fund).
For these purposes, the IHT nil rate band means the amount above which IHT is payable that applied at the date of death. The one exception to this rule is where
- the deceased died after 5 April but before 6 August in any one year, and
- a grant of representation is applied for before the 6 August.
Where this is the case, it is the IHT nil rate band from the tax year before that in which the deceased died that applies.
