The IHT408 form is used to give details if the person who inherited the deceased’s household and personal goods wish to donate an amount to a UK charity and deduct charity exemption against the value of the estate.
Who needs to fill out the IHT408 form?
The IHT408 form must be completed by the executor of the deceased’s estate. If the deceased had a Will, the executor will be named in the Will. If there is no Will, the court will appoint an executor. The executor is responsible for valuing the deceased’s estate and ensuring that any taxes due are paid.
When is the IHT408 form due?
The IHT408 form must be submitted to HMRC within 12 months of the date of death. Failure to submit the form on time may result in penalties and interest charges.
How to fill out the IHT408 form?
The IHT408 form is divided into six sections, each of which requires specific information to be provided. The sections are as follows:
- About the person who has died
This section requires basic information about the deceased, including their full name, date of birth, date of death, and National Insurance number. - The person completing this form
This section requires the name, address, and relationship to the deceased of the person completing the form. - The estate
This section requires detailed information about the deceased’s assets and liabilities. The assets that must be included in this section are:
Property – including any land or buildings owned by the deceased
Cash and bank accounts – including any joint accounts
Investments – including shares, bonds, and unit trusts
Vehicles – including any cars, motorcycles, or boats owned by the deceased
Personal possessions – including jewellery, antiques, and art
Business assets – including any business interests owned by the deceased
The liabilities that must be included in this section are:
Any outstanding debts owed by the deceased
Funeral expenses
Any other expenses incurred by the estate, such as legal fees
- Lifetime gifts
This section requires information about any gifts made by the deceased within the seven years prior to their death. Gifts made within this time period may be subject to Inheritance Tax. - Declaration
This section requires the executor to declare that the information provided is accurate to the best of their knowledge. - Payment
This section requires the executor to provide details of how any Inheritance Tax due will be paid. This can be done through the sale of assets or by obtaining a loan.
Tips for completing the IHT408 form
Completing the IHT408 form can be a complex and time-consuming process. Here are some tips to help make the process easier:
- Organise the deceased’s financial documents:
Before starting to fill out the IHT408 form, it is important to organise all the deceased’s financial documents, including bank statements, property deeds, and investment statements. This will make it easier to gather the required information and ensure that nothing is missed.
- Seek professional advice:
If you are unsure about any aspect of the IHT408 form or the Inheritance Tax process, it is advisable to seek professional advice regarding probate. - Take your time:
Filling out the IHT408 form can take some time, especially if the estate is large or complex. It is important to take your time and ensure that all the information provided is accurate and complete. - Double-check the form:
Before submitting the IHT408 form to HMRC, it is essential to double-check all the information provided. This includes ensuring that all assets and liabilities have been accounted for, and that any gifts made within the seven years prior to death have been declared. - Keep copies of the form:
It is important to keep copies of the IHT408 form and all supporting documents, as these may be required in the future if there are any disputes or queries about the estate.
In summary, the IHT408 form is a crucial part of the Inheritance Tax process. It is used to declare the value of the deceased’s estate and calculate any Inheritance Tax due. The form can be complex and time-consuming, but by following the tips provided and seeking professional advice if needed, it is possible to complete the form accurately and efficiently. Ensuring that the form is completed correctly is essential to ensure that any Inheritance Tax due is paid correctly and on time.
Are you looking for help to complete the IHT400 form? Give DIY Probate a call on 0116 2795044, and we’ll be happy to help.