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An excepted estate is where no inheritance tax needs to be paid. When starting the probate process and dealing with a Will, you'll need to figure out exactly how much the estate is worth in total. After that, you can work out whether you're dealing with an excepted estate.
IHT205 (2011) paper Return of estate information You must complete the paper form IHT205 as part of the probate process if the deceased's estate is an 'excepted estate' and the person that dies was a permanent resident of England, Wales or Northern Ireland.
\u200bIf the Gross Value of the Estate is under £1m and the majority of assets are transferring to a surviving spouse or civil partner you can use form IHT205. \u200bIf the Gross Value of the Estate is over £325,000 and no assets are being transferred to a surviving spouse or civil partner you will need to use form IHT400.
Report the value of the estate to HM Revenue and Customs ( HMRC ) by completing form IHT205. Before you start, check that you're dealing with an excepted estate and that you do not need to send full details of the estate.
IHT205 online You can complete the online IHT205 as part of the probate process if the deceased's estate is an 'excepted estate' and the person that died was a permanent resident of England or Wales. If you're an agent you must complete the paper form IHT205 (2011) Return of estate information.

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Tax rates and allowances The Government has previously announced that the inheritance tax (IHT) threshold will remain frozen at £325,000 until 2021/2022. The rate remains at 40%.
You must complete the form IHT400, as part of the probate or confirmation process if there's Inheritance Tax to pay, or the deceased's estate does not qualify as an 'excepted estate'.
You must complete the form IHT400, as part of the probate or confirmation process if there's Inheritance Tax to pay, or the deceased's estate does not qualify as an 'excepted estate'. You can use the notes and forms IHT401 to IHT436 to support you.
for deaths on or before 31 December 2021 HMRC use form IHT205. for deaths on or after 1 January 2022 you do not need to fill in a HMRC form however you must give details of the assets you need a Grant of Representation for and extra information for Inheritance Tax on the Estate Summary Form (NIPF7) below.
It's possible to transfer any unused percentage of the inheritance tax nil rate band from a deceased spouse or civil partner to the surviving spouse or civil partner. A formal claim process is in place when the surviving spouse dies and not when the first spouse dies.

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