Completing IHT Forms
Completing IHT Forms
We advise you and help you complete your Inheritance Tax returns
What is Inheritance Tax?
Inheritance tax (“IHT”) is a tax that arises out of the value of the estate of someone who has died. It is usually the estate itself (and the Executors of it) who are charged with the responsibility of completing an account/return to HMRC and who are responsible for ensuring the correct payment of IHT.
Executor Duties?
If you been named as an executor on the deceased’s Will, you will first need to assess whether the estate is subject to a requirement to pay IHT. If the deceased had no Will or the Will was invalid, then the executor role is termed ‘Administrator’ and you will usually have been appointed Administrator if you are one of the primary beneficiaries of the estate.
Are Inheritance Tax (IHT) forms required to be completed?
Depending on the estimate of estate value, it may be a requirement to complete a set of Inheritance Tax forms (IHT400 and supplementary forms) and to submit the same to HMRC Capital Taxes. Submitting IHT forms is a process undertaken at the same time as submitting an application for the Grant of Probate (or Letters of Administration where there is no Will).
Paying Inheritance Tax
Usually, the financial assets of the Deceased are used to pay IHT. Most financial institutions permit release of funds for IHT payments in advance of applying for Probate. So it is a rarity for estates to require finance for IHT payments. If a beneficiary is paying Inheritance Tax from own personal funds, he/she can claim repayment from the deceased’s estate once Grant of Probate is obtained and funds released from (say) a property sale.
Contact
If you would like further guidance or advice regarding Inheritance Tax please see our guide below or contact us on:
Email: info@protrustconsulting.co.uk