Estates—IHT returns and tax compliance
Estates—IHT returns and tax compliance

The following Private Client guidance note provides comprehensive and up to date legal information covering:

  • Estates—IHT returns and tax compliance
  • Accountability—the PRs' duty to deliver an IHT account to HMRC
  • Duty to make enquiries and give correct information to HMRC
  • When to use Form IHT400
  • When to use reduced Form IHT400
  • Excepted estates—when to use Form IHT205 or Form IHT207
  • Electronic filing of an IHT account
  • Limited circumstances in which an IHT account may not be required
  • Duty to deliver corrective accounts when valuations are amended or additional assets or liabilities come to light
  • Penalties and interest
  • more

Coronavirus (COVID-19): Due to potential difficulties in having paperwork signed during the coronavirus (COVID-19) pandemic, certain rules relating to the signature and submission of IHT returns and related deadlines and penalties have been relaxed. See: Inheritance tax account (IHT400). For updates on key developments and related practical guidance on the implications of coronavirus for practitioners, see: Practice Note: Coronavirus (COVID-19)—Probate, Coronavirus (COVID-19) and Private Client—overview and Coronavirus (COVID-19) toolkit.

This Practice Note considers compliance and accountability to inheritance tax (IHT) on an individual's estate on death, including:

  1. accountability—the personal representatives' (PRs) duty to deliver an IHT account to HMRC

  2. PRs' duty to make enquiries and give correct information to HMRC

  3. Form IHT400

  4. reduced Form IHT400

  5. Form IHT205 for excepted estates

  6. Form IHT207 for excepted estates of foreign domiciliaries

  7. other cases where an IHT account need not be delivered

  8. PRs' duty to deliver corrective accounts when valuations are amended or additional assets or liabilities come to light

  9. penalties and interest

For information on IHT compliance for trusts, see Practice Note: Trusts—IHT returns and tax compliance.

For information on the timing for filing and payment of IHT following an individual's death, see Practice Notes: IHT—payment deadlines on death and IHT—time limits for filing returns and paying tax—table.

For information on the valuation of estate assets, see Practice Note: IHT—valuation principles and particular types of property.