Hi
I’m confused about one of the qualifying criteria for an excepted estate.
The HMRC website states that one requirement is that the value of the estate is below the NRB threshold, but is this based on the gross estate value, the net estate value or the net qualifying estate value? I phoned HMRC for advice and was told that it’s based on the net qualifying figure, but I’m not entirely confident that the person properly understood my question.
In round figures my Mother left a total estate of 430,000. Of this 212,000 was made up of half the value of the house, half the value of the contents and half of a couple of joint accounts; this went to automatically to my Father under the rule of survivorship. The remaining 218,000 (which I understand to be the net qualifying estate value) is to be divided equally between my two brothers and I under the terms of her will. I know there is no IHT due, but do I need to submit an IHT or is this an excepted estate?
David
Hi David
Thanks so much for your question – and a super one it is too! The ambiguity around the point you raise is not OK! I am trying to get some sort of certainty on exactly this point, as it seems not only is it unclear for the public and legal profession, but there seems to be confusion too between HMRC -v- Probate Registry.
As things stand, the latest feedback I have from HMRC is that (subject to the various peripheral issues like domicile, total estate value, trusts etc) then the threshold for an excepted estate AFTER the application of all exemptions and reliefs are applied.
And so, on that basis, yes – the estate is excepted and the simplified application will apply. Given the ongoing confusion that exists in practice, do please make sure you cover yourself with a call through to HMRC and or the Probate Registry before lodging the application. Probate is taking around 4 months at the moment even for an application to be looked at – so anything you can do to avoid problems all the better.
As I say – we are lobbying for some clarity on this and will of course publish the outcome of that.
Thanks again David.
