Form IHT435: claiming the residence nil rate band
This page covers form IHT435: who needs it, the GOV.UK conditions, downsizing and the £2 million taper.
What is form IHT435?
Form IHT435 is called "Claim the residence nil rate band (RNRB) (IHT435)" on GOV.UK, and it is current: GOV.UK last updated it on 6 April 2025.
The £175,000 figure applies from 6 April 2020 to 5 April 2030 (GOV.UK). It sits on top of the nil rate band of £325,000, which applies from 6 April 2009 to 5 April 2031 (GOV.UK).
See the residence nil rate band for the allowance itself, and the inheritance tax threshold for how the bands stack.
Who needs to complete form IHT435?
GOV.UK sets three conditions on the form IHT435 page. All must be met.
Date of death: the deceased died on or after 6 April 2017.
A residence in the estate: the deceased owned a residence that is included in the estate.
Who inherits: that residence was inherited by direct descendants.
A fourth route covers a residence sold, given away or downsized on or after 8 July 2015, set out below.
The claim falls to the personal representatives, as part of what an executor of a will does.
Form IHT435's own notes define a direct descendant as a child, grandchild or more remote descendant of the deceased. A 'child' here includes step-children, adopted and foster children, and children the deceased was appointed guardian for, plus the spouse or civil partner of a child, grandchild or great-grandchild, provided they have not remarried. Nephews, nieces and siblings do not count (GOV.UK).
What information does form IHT435 ask for?
Working through the form, you confirm the estate passes to direct descendants, give the residence's address and net value, state the percentage passing to direct descendants, note any exemptions or reliefs, and give the chargeable value of the whole residence and the part passing to a direct descendant. A downsizing or disposal claim adds the disposal date and the value of the property disposed of.
On the property figure itself, see how to value an estate for probate.
How does the downsizing rule work?
The residence nil rate band is not always lost when the home is sold before death. GOV.UK states it can also apply if the deceased downsized to a less valuable residence, or sold or gave away a residence, on or after 8 July 2015.
That date is the cut-off. A sale, gift or downsize before 8 July 2015 sits outside the rule as GOV.UK describes it. A later move into a smaller home, rented housing or care can still leave a claim.
To qualify, the former residence would have had to qualify for the residence nil rate band had it been kept, and at least some of the estate must still pass to direct descendants. The addition itself is capped: it cannot exceed the maximum residence nil rate band that would have applied if the sale or downsizing had never happened (GOV.UK).
What happens if the estate is worth more than £2 million?
The residence nil rate band tapers on larger estates: it reduces by £1 for every £2 the estate is worth above the £2 million taper threshold (GOV.UK). Do not assume a large estate with a family home gets the full £175,000.
How does form IHT435 fit with form IHT400 and form IHT436?
Form IHT435 carries no deadline of its own, unlike form IHT436's stated 24-month deadline. It is one of the supplementary schedules listed on the form IHT400 page, which names IHT401 to IHT436, so the IHT400 timings bind you: sent within 12 months of the death, and before you apply for probate (GOV.UK).
Form IHT436 is the companion claim: it transfers an unused residence nil rate band from a spouse or civil partner who died first, and using it also requires form IHT435. See also inheritance tax forms.
Finding what the estate actually held
Claiming the residence nil rate band means proving what the estate held, which means contacting provider after provider and repeating the same details. Legacy Trail finds the accounts and services the person held and notifies them centrally, so the answers land in one place.
Frequently asked questions
Form IHT435 is published on GOV.UK at the page "Claim the residence nil rate band (RNRB) (IHT435)". The address is https://www.gov.uk/government/publications/claim-the-residence-nil-rate-band-rnrb-iht435. GOV.UK last updated that page on 6 April 2025, and the form is current rather than withdrawn. It is interactive and needs Adobe Reader, the same as form IHT400, and you cannot save a partly completed copy. Download it from GOV.UK rather than from a copy hosted elsewhere.
No. The residence nil rate band is a claim, not an automatic allowance. An estate meeting every condition still gets nothing unless the personal representatives send form IHT435.
Form IHT435 claims the residence nil rate band on the current estate. Form IHT436 claims a transferable band from a spouse or civil partner who died first, and a form IHT436 claim also requires form IHT435.
Possibly. GOV.UK states the residence nil rate band can also apply if the deceased downsized, sold or gave away a residence on or after 8 July 2015. The date of that disposal decides whether a claim survives.
Form IHT435's own notes define it as a child, grandchild or more remote descendant, including step-children, adopted and foster children, and their unremarried spouses or civil partners. Nephews, nieces and siblings do not count.
This article is for general information only and does not constitute legal advice. Individual circumstances vary. If you are dealing with an estate, consider taking advice from a solicitor who specialises in probate. For other guidance specific to your circumstances, speak to a funeral director, Citizens Advice, or a regulated financial adviser.