IHT400 Notes - Guide to completing your …

1 Website: Helpline: 0300 123 1072 IHT400 NotesGuide to completing your inheritance Tax accountThis Guide will help you to: fill in the forms you need to complete your inheritance Tax account follow the correct procedure to apply for a grant of probate pay the correct amount of inheritance Tax, if there is any to payGuide to completing your inheritance Tax accountIHT400 NotesWe have a range of services for disabled people. These include guidance in Braille, audio and large print. Most of our forms are also available in large print. Contact our helplines for more 0300 200 1900 i dderbyn fersiynau Cymraeg o ffurflenni a to completing your inheritance Tax accountIHT400 NotesContentsIntroduction What is in this Guide ? 1 What we have sent you 1 When you may not need to fill in form IHT400 1 Grants of representation 4 When form IHT400 need not be filled in completely 4 Delivering a reduced account when there is no tax to pay 5 Death on active service 5 What do I need to fill in if I can send a reduced form IHT400 ?

2 6 Changes to the administration of an estate 7 inheritance Tax and the grant 7 Wartime compensation payments 7 When must I send in the form? 8 Who to contact and why 8 What values to include 9 Documents you must keep 9 Getting started how to fill in your inheritance Tax account 9 Instruments of variation 9 Filling in form IHT400 (pages 1 to 6)Deceased s details, pages 1 10If the deceased was domiciled in Scotland at the date of death, page 2 11 Contact details of the person dealing with the estate, page 3 11 Authority for repayment of inheritance Tax, page 3 12 What makes up your inheritance Tax account schedules, pages 5 and 6 12 Definition of a disabled person 16 Filling in the schedules Introduction 18 Schedule IHT403 Gifts and other transfers of value 18 Schedule IHT404 Jointly owned assets 23 Schedule IHT407 Household and personal goods 26 Schedule IHT408 Household and personal goods donated to charity 26 Schedule IHT409 Pensions 27 Schedule IHT411 Listed stocks and shares 31 Schedule IHT412 Unlisted stocks and shares.

3 And control holdings 32 Schedule IHT413 Business and partnership interests and assets 34 Schedule IHT414 Agricultural Relief 37 Schedule IHT418 Assets held in trust 39 Schedule IHT420 National Heritage assets - Conditional Exemption and maintenance funds 40 Filling in form IHT400 (pages 7 to 16)Assets on which tax may or may not be paid by instalments 43 Jointly owned assets, page 7 43 Assets owned outright by the deceased, pages 7 and 8 43 Deductions from the estate incurred up to the date of death, pages 9 and 10 49 Dealing with a deficit, page 10 52 Exemptions and reliefs, page 10 52 Exemptions and reliefs, page 11 53 Other assets taken into account to calculate the tax, page 11 53 Working out the inheritance Tax, page 12 54 Reduced rate of inheritance Tax 54 Paying inheritance Tax by instalments 55 Interest-free instalments 56 Instalments of tax 56 Simple inheritance Tax calculation 56 Direct Payment Scheme 56 Declaration.

4 Page 13 57 Guide to completing your inheritance Tax accountIHT400 NotesWhat to do after you have filled in form IHT400 Applying for a grant in Northern Ireland 58 Applying for a grant in Englan dand Wales 58 Applying for Confirmation in Scotland 58 When you have filled in and signed all the forms 58 When you must send us form IHT400 before doing anything else 58 Which office to use 58 Where to get information about probate 58If I want you to work out the tax for me? 58 What happens when I get a grant? 59 The inheritance Tax on the estate may change 59 Provisional estimates 59 Liabilities 59 You must tell us about other changes to the estate 59 Applying for a grant in- England and Wales if you are a taxpayer, solicitor or another person licensed to provide probate services 60- Scotland if you are a taxpayer or solicitor working out the tax 61- Northern Ireland if you are a taxpayer or solicitor working out the tax 61- England and Wales without the help of a solicitor or another person licensed to provide probate services and you want us to work out the tax for you 62- Scotland without the help of a solicitor and you want us to work out the tax for you 63- Northern Ireland without the help of a solicitor and you want us to work out the tax for you 64 Paying inheritance TaxPayment in advance 65 Electronic transfer (CHAP S/Bacs)

5 65 Payment by cheque 65 Bank Giro Credit 66 National Savings and Investments products 66 Paying tax by transferring assets instead of money 66 What happens if listed shares or land and buildings are sold for less than their value? 66 How to make sure there is no more tax to pay 66 How to value the assetsWhat value to use 67 Estimating a value 67 Stocks and shares 67 Stock Exchange markings 69 National Savings and Investments 69 Household and personal goods 70 Land and buildings 70 Valuing a business 72 Lloyd s Underwriters 73 Valuing money 73 Exemptions and reliefsExemptions that only apply to lifetime gifts 74 Exemptions that apply to lifetime gifts and transfers on death 74 Qualifying charities 75 Gifts for national purposes 75 National Heritage exemptions 75 Gifts to political parties 75 Reliefs that may apply to lifetime gifts and transfers on death 76 Successive charges relief 76 Other reliefs 77 Taper Relief 77 Fall in value relief 78 Where to include items in the estate 79 IHT400 feedback form 81 Contacts 83 More information 84 ContentsGuide to

6 completing your inheritance Tax accountIHT400 NotesIndex of help for filling in the boxes on form IHT400 Filling in form IHT400 Box(es) Page3 inheritance Tax reference number 106 Domicile 107 If the deceased was domiciled in Scotland 1114 National Insurance number 1115 Income Tax or Unique Taxpayer Reference 1116 Power of attorney 1117 to 22 Contact details 1123 Authority for repayment 1229a Residence nil rate band 1229b Transfer of unused residence nil rate band 1229c Transfer of unused nil rate band 1230 Gifts and other transfers of value 1231 Jointly owned assets 1332 Houses, land, buildings and interests in land 1336 Pensions 1337 Life assurance and annuities 1438 Listed stocks and shares 1439 Unlisted stocks and shares, and control holdings 1444 Foreign assets 1545 Assets held in trust 1546 Debts owed by the deceased 1747 National Heritage assets 1748 Schedules 1749 and 50 Jointly owned assets 4351 Deceased s residence (except farmhouses and jointly owned houses) 4352 Bank and building society accounts 4453 Cash 4454 Premium Bonds and National Savings and Investments products 4455 Household and personal goods 4556 Pensions 4557 Life assurance and mortgage protection policies 4562 UK government and municipal securities 45 Box(es)

7 Page63 Listed stocks, shares and investments 4664 Dividends or interest on stocks, shares and securities 4665 Traded unlisted and unlisted shares except control holdings 4666 Instalments on shares 4667 Control holdings of unlisted, traded unlisted and listed shares 4668 Farms, farmhouses and farmland 4769 Businesses including farm businesses, business assets and timber 4770 Other land, buildings and rights over land 4771 and 72 Interest in another estate 4873 Debts due to the estate 4874 Income Tax or Capital Gains Tax repayment 4875 Trust income due to the deceased 4876 Other assets and income due to the deceased 4980 Mortgages and secured loans 5081 Funeral expenses 5182 Other liabilities 5185 and 86 Dealing with a deficit 5292 Exemptions and reliefs 5293 Exemptions and reliefs deducted from the assets in column B 5399 and 100 Other assets taken into account to calculate the tax.

8 Page 11 53101 Nominated assets 54105 Assets held in trust on which the trustees are not paying the tax now 54109 Reduced rate of inheritance Tax 54110 Instalments of tax 56111 to 119 Simple inheritance Tax calculation 56120 Direct Payment Scheme 56121 Declaration 57 Guide to completing your inheritance Tax accountIHT400 Notes1 IntroductionAs well as form IHT400 , you may need to fill in some of the schedules that go with it. The Notes in this Guide follow the box numbers in form IHT400 . Notes to help you fill in the schedules are also included in this Guide . In this Guide and in form IHT400 we refer to the person who has died as the deceased . We hope this Guide will answer most of your questions. If you need more help: go to phone our Probate and inheritance Tax Helpline on 0300 123 1072 These Notes apply where a person died on or after 18 March 1986.

9 If a person died before this date, phone our you are applying for a grant without the help of a solicitor, another person licensed to provide probate services or other agent, you should have received form IHT400 , this Guide and some of the schedules that we think apply to most estates (go to page 4 for information about grants). But it is your responsibility to make sure you fill in the correct schedules. You do not need to fill in any that do not apply, even if we have included them with the pack. If you need any of the other schedules, download them from our website or phone the Probate and inheritance Tax Helpline. Excepted estatesAn excepted estate is an estate where no inheritance Tax is due and a full inheritance Tax account on form IHT400 is not needed. If the estate is an excepted estate, use form IHT205 or IHT207, Return of estate information instead or in Scotland, form C5 or C5(OUK).

10 If you know that inheritance Tax is due, you do not need to read pages 2 and 3 of this are 3 types of excepted estate: low value estates exempt estates foreign domiciliariesThe rules that apply to deaths on or after 1 September 2006 start on page 2. What is in this Guide ? What we have sent you When you may not need to fill in form IHT400 This Guide will help you fill in form IHT400 and also includes help for the schedules we sent you, some of which you may need to fill in A Website: : 0300 123 1072 Guide to completing your inheritance Tax accountIHT400 Notes2 For deaths before 1 September 2006 phone our helpline or go to our not fill in form IHT400 if the estate is an excepted estate. In some estates you may only need to fill in part of the form. You will need to fill in a different form of account for some special types of grant.