IHT435 is the schedule executors complete with form IHT400 to claim the residence nil rate band, an extra inheritance tax allowance of up to £175,000 when a home the deceased lived in passes to their children, grandchildren or other direct descendants. It applies to deaths on or after 6 April 2017, and the allowance is cut by £1 for every £2 the estate is worth over £2 million.
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What is form IHT435?
Form IHT435, titled “Claim for residence nil rate band (RNRB)”, is a schedule to the IHT400, the full inheritance tax account. It is answered at box 29a of the IHT400 and completed before you move on to page 12 of that form. The current version is dated April 2025, runs to seven pages and is filled in on screen using Adobe Reader. The form notes say the residence nil rate band is applied before the ordinary nil rate band and any transferred band. For the rules behind the allowance, see our guide to the residence nil rate band. For the main account, see completing the IHT400.
Who can claim on IHT435?
You can claim if all three conditions are met: the person died on or after 6 April 2017, the estate includes a residence they owned, and that residence is inherited by their direct descendants. The home need not have been the main home, but the deceased must have lived in it at some point while it was in their estate. A buy to let property they never lived in does not count.
Direct descendants are children, grandchildren, great grandchildren and great great grandchildren. A child includes a stepchild whose parent was the deceased’s spouse or civil partner, an adopted child, a foster child and a child for whom the deceased was an appointed or special guardian. A descendant’s spouse or civil partner also counts. Nephews, nieces and siblings do not.
If the estate held interests in two or more homes, the personal representatives nominate one, and only one can qualify: see nominating a main residence. A home left in trust may still qualify, depending on the type of trust: see RNRB and homes left in trust.
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What does IHT435 ask for?
- Questions 1 to 3: whether anything passes to direct descendants, the total estate before reliefs and exemptions, and the chargeable estate from IHT400 box 108.
- Questions 4 to 12: the residence address, its value at death net of any mortgage secured on it, the percentage passing to direct descendants to four decimal places, who they are, and whether exemptions, reliefs or grossing up apply.
- Questions 13 and 14: unused residence band from an earlier spouse or civil partner, carried in from form IHT436.
- Questions 15 to 24: the downsizing addition.
- Question 25: the residence nil rate band available, from HMRC’s online RNRB calculator.
If you answer yes to question 10 or question 20, because grossing up or interaction applies, HMRC works out the figure instead. HMRC’s guidance says the calculator can partly complete IHT435 for you.
How much residence nil rate band can the estate get?
The allowance is the lower of the value of the home, or the share of it inherited by direct descendants, and the maximum for the tax year of death. Value means open market value less debts such as a mortgage. The allowance is set against the whole estate, not just the home.
For estates worth more than £2 million, the maximum is reduced by £1 for every £2 over that figure. HMRC’s guidance says the taper uses the estate’s total value less debts and liabilities, without deducting exemptions or reliefs, which is why question 2 asks for the value before reliefs.
| Tax year of death | Maximum residence nil rate band |
|---|---|
| 2017 to 2018 | £100,000 |
| 2018 to 2019 | £125,000 |
| 2019 to 2020 | £150,000 |
| 2020 to 2021 onwards, including 6 April 2026 to 5 April 2028 | £175,000 |
| Taper threshold | £2 million, reduced by £1 for every £2 over |
Illustration only. Rosa dies in 2026 to 2027 leaving an estate of £850,000 after debts, all to her two daughters. It includes her flat, worth £300,000 after the mortgage. The residence band is the lower of £300,000 and £175,000, so £175,000. Added to the £325,000 nil rate band, £500,000 is taxed at 0%. If her flat had been worth only £120,000, the residence band would have been £120,000, unless a downsizing addition applied.
What if the deceased downsized or sold their home?
Questions 15 to 24 deal with the downsizing addition. It can apply where the deceased moved to a less valuable home, or sold or gave away a home, on or after 8 July 2015. The former home must have qualified had it been kept, and some of the estate must pass to direct descendants. The addition cannot exceed the band that would have been available without the disposal. Question 18 asks for the open market value of the deceased’s interest at the date of disposal, after deducting any mortgage but not selling costs. Where there were several disposals of one home, you may choose which date to use. Our page on the downsizing addition covers the rules in more depth.
What is the deadline for IHT435?
IHT435 goes in with the IHT400. The IHT400 notes say the account must reach HMRC within 12 months of the date of death, and tax is due by the end of the sixth month after the death. Section 8L of the Inheritance Tax Act 1984 sets a formal time limit for two parts of the claim: a brought forward allowance from a spouse or civil partner and a downsizing addition. For these, the personal representatives must claim within 2 years from the end of the month of death or, if later, 3 months from the date they first act. HMRC can allow a longer period, and a claim made in time can be withdrawn up to one month after the period ends.
What mistakes are common on IHT435?
- Claiming for a home left to a nephew, niece or sibling, who are not direct descendants.
- Using the gross value of the home instead of its value net of the mortgage.
- Working out the taper on the estate after reliefs, rather than before reliefs and exemptions.
- Rounding the percentage passing to descendants to fewer than four decimal places.
- Missing a downsizing addition where the deceased sold a home to move into care or somewhere smaller.
- Leaving out IHT436 where the deceased was widowed and the first spouse’s band was unused.
What happens after HMRC receives IHT435?
HMRC reviews the claim together with the IHT400. Where you answered yes to question 10 or question 20, HMRC calculates the band itself and the tax figure in the account may change. The value of the home must be its open market value at the date of death, so keep the evidence behind your figure: see valuing property for probate.
Frequently asked questions
Does a home left to a husband, wife or civil partner qualify?
A spouse or civil partner is not a direct descendant, so a home left to them does not use the band. Any unused band can pass to the survivor’s estate and be claimed when they die.
Can the residence nil rate band apply to a buy to let property?
Only if the deceased lived in it at some point while owning it. A property they never lived in does not qualify.
What happens to an estate worth more than £2 million?
The maximum is reduced by £1 for every £2 over £2 million. With a £175,000 maximum, the band is lost entirely once the estate passes £2,350,000.
Does the home have to be in the UK?
HMRC says that people who are not long term UK residents are taxed only on UK assets, so for them the home must be in the UK to qualify.
If HMRC opens a check into your return, tax investigation insurance pays your accountant’s fees. Solar Protect cover pays up to £100,000 with no excess; it never pays tax, interest or penalties. Read how our cover works or get a quote.
Sources
- assets.publishing.service.gov.uk: Claim for residence nil rate band iht435
- GOV.UK: Claim the residence nil rate band rnrb iht435
- assets.publishing.service.gov.uk: IHT400 2022 Notes 04 26final
- legislation.gov.uk: Act 1984 c. 51, section 8H
- GOV.UK: Inheritance tax nil rate band and residence nil rate band thresholds f
- GOV.UK: Inheritance tax residence nil rate band
- GOV.UK: Check if you can get an additional inheritance tax threshold
- legislation.gov.uk: Act 1984 c. 51, section 8L
- GOV.UK: Paying inheritance tax
- GOV.UK: Inheritance tax transfer of threshold
Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 November 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.