How do I prepare an IHT435 form?

This article explains how to prepare an IHT435 schedule when claiming the residence nil rate band in your case

Identify the asset the residence nil rate band is being claimed on

• Add the building or land the residence nil rate band is being claimed on as an asset in your case - See adding assets and liabilities
• In the Ownership information section, answer Yes to question Will you be claiming residence nil rate band on this residence?

• Select the correct Proprietorship
• Add the relevant valuation for the asset 
• Remember to add any mortgages or secured loans associated with the residence via the Debts tile
• In the Debt secured against field be sure to select the relevant land or building from the dropdown menu to link the asset and liability in the platform

Creating an IHT435 schedule

• When ready to create an IHT400 form on your case, go to Documents & forms > Inheritance Tax forms - please see How do I prepare an IHT400 form and schedules
• Select IHT400 from the dropdown menu and click Generate form
• On page 5 of the IH400 form, tick Yes against question 29a Residence nil rate band
• Once you have updated everything you need to in the IHT400, click Save & close
• In the Inheritance Tax Forms page an IHT435 will appear in your list of forms

Populating the IHT435

• Navigate to Documents & forms > Inheritance Tax forms
• Click the IHT435 form in the list to open it

💡 For the auto-populated fields in the IHT435:

• Questions 2 and 3 will automatically pull in the sum of all the corresponding schedule values

• Question 4 will be ticked Yes if you have added a building with the Will you be claiming residence nil rate band on this residence? question answered Yes
• Question 5 will show the address the residence nil rate band is being claimed against - this will only be for a building and not land
• Question 6 will show the value of the asset the residence nil rate band is being claimed against less any linked liabilities

• Question 13 will be ticked if you have already ticked yes against question 29b Transfer of unused residence nil rate band in the IHT400 form in your case
• Question 14 will show the corresponding value from box 15 or 22 if you have already ticked yes against question 29b Transfer of unused residence nil rate band in the IHT400 form in your case, and added the relevant values in an IHT436 form in your case

• Review the form and enter any further relevant data in the grey editable fields
• Save and close the IHT435 form to save your changes