IHT returns

Produced by Tolley

The following Trusts and Inheritance Tax guidance note Produced by Tolley 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

IHT returns

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

  1. accountability ― the duty to deliver an account (form IHT400) to HMRC

  2. reduced form IHT400

  3. excepted estates where form IHT205 is delivered

  4. duty to make enquiries and give correct information to HMRC

  5. 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:

  1. a statement to that effect

  2. a provisional estimate of the value of the property

  3. an undertaking to deliver a further Account as soon as its value is ascertained

‘Appropriate property’ means:

  1. all property forming part of the deceased’s estate immediately before death, including property passing by will or intestacy (’free estate’), joint property and settled property in which the deceased had a qualifying interest in possession

  2. all chargeable lifetime transfers made within seven years of the date of death (including failed potentially exempt transfers)

If an account is required, whether or not any tax is actually payable, the appropriate account is the full version of form IHT400. It must be delivered:

  1. within 12 months from the end of the month in which

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