New excepted estate change in regulations

Aiming to simplify the inheritance tax process and make this less daunting for Personal Representatives (“PRs”), the Inheritance Tax (Delivery of Accounts) (Excepted Estates) (Amendment) Regulations 2020 came into force on 1stJanuary 2022 changing the reporting requirements for excepted estates (estates that are below the current Inheritance Tax threshold).  The change allows PRs of excepted estates, to avoid the need to complete the inheritance tax form IHT205 or 217. 

From the 12th January 2022, instead of completing an inheritance tax form as part of the probate application, PRs will instead be asked to confirm the net value of the estate for IHT purposes, the gross value of the estate for inheritance tax purposes, the net qualifying value of the estate and whether applicants are claiming the Nil Rate Band. Presumably, this will be achieved via an updated set of questions on the online system for submitting probate applications although we are waiting for the updated guidance to be released. 

We are here to assist any PRs of estates with applications and understanding whether an estate is ‘excepted’ Please get in touch with the Wills, Trusts and Estates team.