IHT - IHT 400 or IHT 205?

[tomyoung90]

I am deciding whether or not an IHT 400 form is appropriate or if the estate is except and therefore requires a 205. There are £200,000 in cash assets, plus 2 PETs, one of which is £110,000 of quoted shares (eligible for business property relief) and four annual payments of £5000 (eligible to have £3000 annual allowance deducted). Does anybody know if the reliefs and exemptions are included as part of the estate and deducted later, therefore an IHT 400 will be required, or if they do not count towards the estate and therefore a IHT 205 is needed?

[buildersmate]

You are clearly pretty clued-up about this already.
Dzug or SkylineD may be able to correct me, but I reckon you are best to use the IHT400 and see what the IHT division of HMRC comes back up. It won't disadvantage you.
I reckon the estate is valued on its gross value which seems to take you over the £325k - only just.

[tomyoung90]

Thanks for your very helpful answer. I'm a law student and it was just an exercise, so I thought I'd throw it out there as I wasn't sure. I wish I really did have a £330,000 estate to worry about! As you said, I went for the IHT 400 and applied the exemptions and reliefs later, as the gross estate didn't fit into the nil rate band.