Transfer of nil rate band after 24 months possible?

[tanc]

Due to really bad planning and three executors not really speaking to each other enough, time has slipped away and the 24 month period to submit the form to transfer our father's nil rate band to our mother's estate has passed. It is now 28 months after her death and we're wondering if there is any provision for HMRC to allow the transfer after 24 months? We don't have any documentable extenuating circumstances like depression or other clinical issues although there certainly was depression involved, it just wasn't diagnosed and treated. Other circumstances include one executor living abroad and travelling a lot due to work, another executor having a baby immediately after our mothers death.

Does anyone have experience of obtaining an extension on the 24 months and what might be involved? We have a solicitor submitting the paperwork but would appreciate more input.

[AGoodman]

HMRC certainly have power to allow it but the legislation doesn't contain any criteria. I'm afraid I don't have any direct experience to know how generous they are but I would have thought you should be able to make a reasonable case given it is only four months and presumably you were not aware of the deadline (this in itself will not be enough given the 12 month deadline for filing an IHT account).

If your solicitor has not been able to find any (I suspect there isn't any) it may be worth him contacting the IHT team and asking them whether there are any published criteria and, if not, what criteria they use.

[maths]

I would suggest that the two year deadline is an absolute time limit in respect of which HMRC has no power to extend it irrespective of the surrounding circumstances.

[maths]

Ignore my post; thought I was answering a DoV query.

[maths]

The relevant legislation is IHTA 1984 s8A which lays down the 2 year deadline (ie 2 years from end of month of the surviving spouse's death)
OR
if later 3 months from the date when the PRs first act as such (albeit perhaps tricky to define).

When was probate obtained? Who filed for probate?

The section goes on to add OR "such longer period as.......HMRC....may in a particular case allow". As AG states there appears to be no HMRC guidance on this aspect. Normally, extensions such as mentioned are typically rarely granted as the 2 years was initially fixed on the grounds that this was reasonable.

The section also provides that the claim may be made by certain other persons should the PRs fail or refuse to lodge a claim.

You can throw yourself on HMRC's mercy but don't hold your breath.