Form IHT402: Claim Transferable Nil-Rate Band (2026 Guide)

Form IHT402 is how the surviving spouse’s estate claims the unused nil-rate band of a predeceased husband, wife, or civil partner. Filed alongside IHT400 on second death, it can lift the tax-free threshold from £325,000 to as much as £650,000. Not automatic. Not generous. Strict, paperwork-heavy, and governed by a two-year deadline most families do not know exists. Miss the window and you hand HMRC tax Parliament never intended you to pay.

When Do You Need This?

Widow, widower, or surviving civil partner dies, and personal representatives want to draw down the unused NRB of the first spouse. Called Transferable Nil-Rate Band (TNRB). Finance Act 2008, s.8A Inheritance Tax Act 1984.

Need IHT402 if ALL of these true:

• Deceased was married/civil partnership when first spouse died
• First spouse died before this person
• First spouse did not use all of NRB (often because everything passed spouse-to-spouse under spouse exemption, using zero NRB)
• Filing IHT400 or claiming TNRB to qualify as excepted estate

NOT needed if: divorced before first death (extinguishes transfer), or first spouse’s estate used 100% NRB already.

What It Involves

Supporting schedule to IHT400. Sits in same pack. Asks for first spouse’s personal details, date of death, estate value, gifts/legacies using NRB, percentage of NRB unused. Calculates what unused percentage is worth today — against current £325,000 threshold, not threshold on first death.

Critical point: transfer is by percentage, not monetary amount. 100% unused NRB from 1995 death (when NRB was £154,000) is worth £325,000 today. Survivor’s estate benefits from uplift.

Fees and Costs

No HMRC filing fee for IHT402. Free to submit. Probate application fee (PA1P): £300 where estate over £5,000. Traditional solicitor IHT400 pack drafting: £1,200–£4,500. Chris drafts full IHT400 + IHT402 + IHT435 pack at £30 (Litigator) or £1,000 (Hybrid) for larger/contentious estates.

How to Complete It

1. About the Spouse Who Died First

First spouse’s full name, DOB, date of death, last address. Date of death is load-bearing — rules and thresholds depend on it. Pull from death certificate.

2. Relationship

Confirm marriage/civil partnership. Evidence: marriage/civil partnership certificate. Religious ceremony without civil registration does not count.

3. First Spouse’s Estate

Gross and net value. Amount passed to survivor under spouse exemption. Anything passed to others. Use IHT account filed on first death (IHT400, IHT205, or pre-2004 Cap 202/C1). If none filed: reconstruct from probate records, bank statements, will.

4. Legacies and Gifts Made by First Spouse

Specific legacies to non-spouse beneficiaries + lifetime gifts within 7 years of first death. Tells HMRC how much NRB used. Will left everything to survivor: spouse exemption swallows estate, zero NRB used, maximum 100% transfer.

5. Calculating Unused Percentage

Unused NRB % = (NRB on first death − NRB used on first death) ÷ NRB on first death × 100

Example: first spouse died 2002 (NRB £250,000). Left £50,000 to sister, rest to survivor. NRB used: £50,000. Unused: £200,000. Percentage: 80%. Applied today: 80% × £325,000 = £260,000 uplift. Combined with survivor’s own £325,000 = £585,000 tax-free.

6. Supporting Documents

Send certified copies (not originals):

• First spouse’s death certificate
• Marriage/civil partnership certificate
• First spouse’s will (if any) + codicils
• Grant of probate/letters of administration from first death
• IHT account from first death (IHT400, IHT205, Cap 202, C1)
• Deed of variation affecting first estate

Decades-old documents lost: write narrative explaining efforts — General Register Office, probate registry, HMRC, solicitor archive. HMRC accepts best evidence where originals genuinely lost.

Key Deadlines

• Two years from end of month of second death — hard statutory deadline for TNRB claims under s.8B IHTA 1984. Miss and relief lost unless HMRC exercises rare discretion.
• Six months from end of month of second death — IHT due. Interest runs if unpaid.
• Twelve months from end of month of second death — default IHT400 filing deadline.
• Four years — HMRC enquiry window.

What Happens After You File

IHT400 + IHT402 submitted. Payment reference issued. After tax paid: HMRC sends IHT421 probate summary directly to Probate Registry. PA1P processed.

Timelines 2026: HMRC acknowledges within 4 weeks; IHT421 within 15 working days of payment; grant 4–8 weeks after. Delays common where TNRB evidence incomplete — HMRC queries pause clock.

HMRC accepts: unused percentage uplifts threshold. Challenges: respond with further evidence, appeal to First-tier Tribunal (Tax Chamber) under s.222 IHTA 1984.

Common Mistakes

• Missing two-year deadline — most expensive error
• Confusing TNRB with RNRB — separate claims, separate forms (IHT402 vs IHT435)
• Calculating by monetary amount not percentage
• Assuming divorce preserves transfer — it does not
• Missing multiple predeceased spouses — can claim all, capped at 100%
• Forgetting deeds of variation
• Sending originals instead of certified copies

The Rules That Apply

• Inheritance Tax Act 1984 — s.8A (transfer), s.8B (claims), s.8C (RNRB interaction)
• Finance Act 2008 Schedule 4 — introduced TNRB
• HMRC Inheritance Tax Manual IHTM43001+

How Chris Can Help

Chris drafts full IHT400 pack including IHT402 (TNRB), IHT435 (RNRB), IHT436 (transferable RNRB) to HMRC standard. Feed Chris death certificates, wills, estate figures. Chris produces numbered, box-by-box completion of every schedule, flags evidence still needed, cover letter for submission.

The founder’s own story: family probate cost £1,200 quote, 2 years with solicitor without resolution. One afternoon with Chris, forms drafted, estate closed in 3 weeks. Most solicitors excellent — ours simply was not a fit. That experience is why eLitigant exists.

7-day money-back guarantee. We refund. We are miracle-makers, not miracle-workers.

Larger estates or contested wills: Hybrid £1,000 with reviewer sign-off.

Subscribe: Email hello@elitigant.com with subject line “Application update” and say hello with your given name.

FAQ

First spouse died in 1970s?

Yes. No backstop. Estate tax (pre-1975) and CTT (1975–1986) treated as equivalent to NRB.

No will from first death?

Intestacy applied. Survivor typically inherited most/all — often 100% transfer. Need letters of administration, not will.

My spouse died and left everything to me — do I need to file?

Yes, but your personal representatives will on your death. Keep first spouse’s paperwork in your estate file.

IHT402 vs IHT436?

IHT402: general £325,000 NRB. IHT436: residence £175,000 RNRB. Separate reliefs, separate forms, same 2-year deadline.

Claim TNRB more than once?

Yes if widowed more than once. Separate IHT402 for each predeceased spouse. Combined capped at 100%.

Deed of variation affects claim?

Can do. If beneficiaries signed deed within 2 years of first death redirecting to non-spouse, NRB may have been used that would otherwise have been unused.

HMRC refuses the claim?

Notice of determination. 30 days to appeal to HMRC under s.222 IHTA 1984. Ultimately First-tier Tribunal (Tax Chamber).