Financial Times Guide to Inheritance Tax, Probate and Estate Planning

106 Part 3

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Inheritance tax

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The deceased person was a foreign domiciliary who lived permanently

abroad and died abroad and the value of their UK assets is under

£150,000.

Where all, or a substantial part of an estate, passes to exempt beneciaries,

HMRC may accept a reduced account from the personal representatives.

The completion of the return form IHT400 is done on the principle of self-

assessment, which means that the executors or administrators must assess

the value of the estate, net of any liabilities, and then disclose this on the

form to the best of their knowledge. They then calculate any IHT payable.

The following pages tell you more about the account. They provide guidance

on how you should deal with the information in each part of the account

or tell you where you can nd this information in other parts of this book.

Completing form IHT400

Form IHT400 consists of 16 pages and is shown in Figure 12.1 on page 108.

It covers the following:

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Personal details of the person that has died.

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Details of the persons acting as personal representatives and dealing

with the estate.

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Details of the will, if one was left.

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Details of the assets and liabilities of the deceased.

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Claims for any exemptions or reliefs.

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Details of any additional schedules that are enclosed with the return.

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Declarations.

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A checklist.

The basic 16-page return would apply to most estates. However, each

estate is different and will consist of different assets, liabilities, claims, etc.

Therefore, any additional information is reported to HMRC on a supporting

schedule that would be enclosed with the main tax return. Only the sup-

porting schedules that are relevant to the person that has died will require

completion and submission with the tax return form IHT400. A list of these

is given in Table 12.1.

There is further advice and guidance to help the personal representatives

complete the return form IHT400 on the HMRC website at:

www.hmrc.gov.uk/inheritancetax/iht400-notes.pdf

12

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Completing the inheritance tax return 107

Table 12.1 List of IHT400 schedules

IHT401 Domicile outside the United Kingdom

IHT402 Claim to transfer unused inheritance tax nil rate band

IHT403 Gifts and other transfers of value

IHT404 Jointly-owned assets

IHT405 Houses, land, buildings and interests in land

IHT406 Bank and building society accounts

IHT407 Household and personal goods

IHT408 Household and personal goods given to charity

IHT409 Pensions

IHT410 Life assurance and annuities

IHT411 Listed stocks and shares

IHT412 Unlisted stocks and shares and control holdings

IHT413 Business or partnership interests and assets

IHT414 Agricultural relief

IHT415 Interest in another estate

IHT416 Debts due to the deceased

IHT417 Foreign assets

IHT418 Assets held in trust

IHT419 Debts owed by the deceased

IHT420 National Heritage assets, conditional exemption and offers in lieu of tax

IHT421 Probate summary

IHT422 Application for an inheritance tax reference

IHT423 Direct payment scheme bank or building society account

Alternatively, the Probate and Inheritance Tax Helpline on 0845 30 20 900

is available to offer guidance.