Completing IHT forms
HMRC is in the process of introducing online filing for IHT returns. Online filing is not universally available yet so this blog is based on the process required for paper filing.
In the case of an excepted estate, the following forms may need to be sent to the Probate Registry (not HMRC!) as part of the grant application.
IHT205 – Return of Estate Information
Where the estate qualifies as an excepted estate and the deceased was UK domiciled, a return must be made to HMRC using form IHT205: Return of Estate Information. Notes on completing the form are published on HMRC’s website as booklet IHT206 (2011).
IHT217 – Claim to transfer unused nil rate band for excepted estates
Where it is claimed that the estate is excepted because the whole of the nil rate band is available from a spouse or civil partner who died before the deceased, form IHT217 must also be completed.
Depending on the question a positive or negative answer to any of these questions may require the completion of form IHT400 so that the IHT205/IHT217 procedure cannot be used. Each question indicates when the reader must ‘stop filling in this form’.
IHT207 – Return of Estate Information
IHT207 should be used to report the excepted estate of a foreign domiciliary and the related notes are contained in booklet IHT208.
In all cases, once the appropriate form(s) has been completed the final declaration must be signed by all those applying for probate.
Submission to the Probate Registry. The forms should then be presented with the oath.
If the estate is an excepted estate there is no need to deliver an account to HMRC and so no filing deadline applies. However, if HMRC do not agree that the estate is excepted the PRs may be liable to penalties for late submission and late payment of the tax. Reference should be made to the section below dealing with the submission of IHT accounts.
The IHT217 does state that the form must be sent no later than 24 months after the end of the month in which the deceased died.
To find out more information about completing IHT forms or require assistance in completing IHT forms, get in touch with us today.