Are you making the most of the tax exemptions and allowances available when applying for Grant of Probate?

It can seem quite daunting when you look at the HM Revenue & Customers estate return form required to obtain a Grant of Probate. As an executor, you want to ensure that you complete the correct paperwork to make best use of the various tax exemptions and allowances.

What tax exemptions and allowances are there for Grant of Probate?

Tax Exemption

If the deceased has left their estate to a spouse, civil partner or to charitable organisation, then the estate will receive full inheritance tax exemption.

Tax Allowances

For people leaving their estate elsewhere then there is a tax free allowance of £325,000 which is known as the nil rate band. However, for people who own their own property and intend to leave their estates to their direct descendants (including adopted, foster or step-children) you can increase this tax free allowance to £500,000 by claiming the residence nil rate band (full allowance available on estates valued below £2m).

If the deceased was widowed you can also look to claim any used allowances from their late spouse or civil partner, giving the opportunity to push the total tax free allowance as high as £1m.

If you owned a property during your lifetime but have had to downsize or move into alternative accommodation (perhaps into care) then the residence nil rate band can still be available if considered and claimed properly.

Partial Tax Exemption / Business Relief

In some cases there is also the potential to claim Business Property Relief or Agricultural Property Relief to get a full or partial Inheritance Tax exemption on some assets.

This ensures that any exemptions available to gifts during your lifetime that would otherwise fall within an estate for Inheritance Tax purposes can help mitigate any tax that may be due.

Here at Stephens Scown we are able to help you complete the estate return to ensure that you are claiming the reliefs and allowances that are due and to obtain the Grant of Probate.

If you wish to speak to us then please get in touch with our Private Client team.