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 (IHTM06011), 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
- (where the death is before 6 April 2011) a charge does not arise under IHTA1984/S151A-C (IHT charge on an alternatively secured pension fund).