IHT returns

By Tolley in association with Peter Gausden, Consultant Solicitor at Rowlinsons
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The following Trusts and Inheritance Tax guidance note by Tolley in association with Peter Gausden, Consultant Solicitor at Rowlinsons provides comprehensive and up to date tax information covering:

  • IHT returns
  • Accountability - the duty to deliver an account (form IHT400) to HMRC
  • Reduced form IHT400
  • Excepted estates where form IHT205 is delivered
  • Duty to make enquiries and give correct information to HMRC
  • Duty to deliver corrective accounts when something changes

This note considers the duty to deliver an account for IHT and explains which form to use in various circumstances. It covers:

  • accountability – the duty to deliver an account (form IHT400) to HMRC
  • reduced form IHT400
  • excepted estates where form IHT205 is delivered
  • duty to make enquiries and give correct information to HMRC
  • duty to deliver corrective accounts when something changes

For information on the principles of valuation see the Valuation of property guidance note and for valuation compliance see the Valuing the estate guidance note.

For advice on how to pay inheritance tax see the Payment of IHT on death guidance note.

Accountability - the duty to deliver an account (form IHT400) to HMRC

Normally, personal representatives cannot obtain a grant until they have delivered an inheritance tax account giving full details of ‘appropriate property’ and its value to the best of their knowledge and belief, and until they have paid the inheritance tax, if any, for which they are liable on delivery of the account. If, after making the fullest enquiries that are reasonably practicable in the circumstances, they are unable to ascertain the exact value of particular property, it is in the first instance sufficient as regards that property if their account contains:

  • a statement to that effect
  • a provisional estimate of the value of the property
  • an undertaking to deliver a further Account as soon as its value is ascertained

‘Appropriate property’ means:

  • all property forming part of the deceased’s

More on Application for probate: