How to transfer a nil-rate band

The transfer of a nil-rate band applies to a minority of estates. To find out what it is, and whether it applies, see our guide “What is a transferable nil-rate band?”.

For those estates where the transfer applies, there are two routes for making an application. The route that applies depends on the size and nature of the estate and details of the first spouse or civil partner.

The "Claim to transfer unused nil rate band" form (IHT217)

Since March 2011, the process for transferring a nil-rate band has been – for many estates – fairly straightforward.

This “easier route” is available for estates where:

1. The second spouse or civil partner died on or after 6 April 2010;
2. The first spouse died on or after 13 November 1974, or 5 December 2005 for civil partners;
3. The nil-rate band of the first spouse or civil partner was entirely unused; and
4. The applicable inheritance tax form is the “Return of estate information” (IHT205), not the IHT400 (or would be, after the transfer of the nil-rate band).

If these conditions are satisfied, you may be able complete the “Claim to transfer unused nil-rate band for excepted estates” form (IHT217). There are a few other conditions too, listed on page 2 of the form.

It is a relatively straightforward form, and it should be submitted to a probate registry along with the “Probate application” form (PA1) and “Return of estate information” form (IHT215) when you apply for the grant of representation.

The Probate Wizard will guide you through the process and compile the IHT217 form for you, if applicable.

The IHT402 form

In all other cases, the “Claim to transfer unused nil rate band” form (IHT402) must be used. This is one of the schedules to the “Inheritance tax account” (IHT400), so, unfortunately, the IHT400 must be completed too. These must be submitted to HM Revenue & Customs (not a probate registry) before applying for a grant of representation.

If this is the case, you may wish to consider seeking assistance from a solicitor or other probate professional.