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09 Misc Info
09 Misc Info
09 Misc Info
to find out whether the deceased's estate can qualify as an 'excepted estate' you will need to fill in
form iht205. to help you to decide ‘is it an excepted estate?’ you can view the information in the
customer guide.
to be able to get access to the assets in the deceased's estate, you normally need to get a grant
of representation. in england, wales and northern ireland, the two most common types of grant
are
you can find more information about grants of representation and whether one is needed for the
estate you are dealing with, in our customer guide in the section: what is a grant of
probate/confirmation and how do i get one?
(for a death between 6 april 2005 and 5 april 2006 the threshold was £275,000). very broadly, if
the net value of the assets owned by deceased, together with
does not exceed this figure, there should be no inheritance tax to pay as a result of the death.
where the tax threshold is exceeded, you will have to pay at least some of the inheritance tax that
is due before you can get a grant.
if the deceased's estate meets certain conditions, you will be able to get a grant by providing only
basic information. we call such an estate an 'excepted estate'. most estates in the uk (over 80%)
qualify as an 'excepted estate'. there is no inheritance tax to pay on an estate that qualifies as an
'excepted estate'
for deaths on or after 6 april 2004, form c5 will help you to decide whether the deceased's estate
can qualify as an 'excepted estate'.
if it does, you will only need to fill in the inventory(c1) and form c5
if the deceased died after 5 april but before 6 august in any one tax year and the grant of
representation is applied for before 6 august of that year, the threshold which applies for an
excepted estate is the one from the tax year before that in which the deceased died.
examples:
joan brown died on 9 may 2004 and the grant was taken out on 21 july 2004.
the correct threshold to use was £255,000.
david smith died on 7 june 2004 and the grant was taken out on 21 august 2004.
the correct threshold to use was £263,000.
the table below shows the different nil-rate bands in use for deaths between 15 march 1998 and
the present date.
from to nil-rate band
15.03.1988 05.04.1989 £110,000
06.04.1989 05.04.1990 £118,000
06.04.1990 05.04.1991 £128,000
06.04.1991 05.04.1992 £140,000
10.03.1992 05.04.1995 £150,000
06.04.1995 05.04.1996 £154,000
06.04.1996 05.04.1997 £200,000
06.04.1997 05.04.1998 £215,000
06.04.1998 05.04.1999 £223,000
06.04.1999 05.04.2000 £231,000
06.04.2000 05.04.2001 £234,000
06.04.2001 05.04.2002 £242,000
06.04.2002 05.04.2003 £250,000
06.04.2003 05.04.2004 £255,000
06.04.2004 05.04.2005 £263,000
06.04.2005 05.04.2006 £275,000
06.04.2006 05.04.2007 £285,000
06.04.2007 - £300,000
for transfers on death, the value of an estate above the nil-rate band is taxed at the rate of 40%.
for lifetime transfers the rate is 20%.
the table below gives the excepted estate limits for deaths from 1 april 1987 to the present date.
from to limit
01.04.1987 31.03.1989 £70,000
01.04.1989 31.03.1990 £100,000
01.04.1990 31.03.1991 £115,000
01.04.1991 05.04.1995 £125,000
06.04.1995 05.04.1996 £145,000
06.04.1996 05.04.1998 £180,000
06.04.1998 05.04.2000 £200,000
06.04.2000 05.04.2002 £210,000
06.04.2002 05.04.2003 £220,000
06.04.2003 05.04.2004 £240,000
06.04.2004 present iht threshold*
* if the death is after 5 april but before 6 august in any one tax year and the grant of
representation is applied for before 6 august that year, the threshold which applies for an
excepted estate is the one from the tax year before that in which the deceased dies.
if the death is between 6 august and 5 april in any one tax year, the threshold to use for an
excepted estate is the iht threshold that applies at the date of death.
what is the due date for the payment of the inheritance tax?
inheritance tax is due six months after the end of the month in which the death occurred. we call
this the due date. interest begins to be payable from the day after the due date if the tax has not
been paid.
the table below shows the due dates for inheritance tax and also the date that interest starts.
month of death due date interest starts from
january 31 july 1 august
february 31 august 1 september
march 30 september 1 october
april 31 october 1 november
may 30 november 1 december
june 31 december 1 january
july 31 january 1 february
august 28/29 february 1 march
september 31 march 1 april
october 30 april 1 may
november 31 may 1 june
december 30 june 1 july
exempt estate
a type of excepted estate where the gross value of the estate does not exceed £1,000,000 and
there can be no liability to inheritance tax because spouse or civil partner exemption or charity
exemption bring the estate below the inheritance tax threshold. some restrictions apply to this and
further details can be found in the customer guide.
exempt gifts
gifts that are exempt from inheritance tax. these include
* gifts to individuals more than seven years before death. see potentially exempt transfers
* gifts to spouses or civil partners
* gifts not exceeding £3,000 in any one tax year. see annual exemption
* gifts on consideration of marriage or civil partnership
* gifts to uk charities
* gifts for national purposes
* small gifts
* gifts which are normal expenditure out of income
http://www.theprobateservice.gov.uk