IHT and HMRC

Question 1

When do the PRs have to deliver the account to HMRC?

Answer 1

12 months after the end of the month the testator dies

Question 2

what are the conditions of an estate that does not need to form an IHT account?

Answer 2

The deceased died domiciled in the UK;

• The estate comprises only property passing under the will, by intestacy, or by survivorship or is settled property (not exceeding £150,000) in which the deceased had an interest in possession;
• Maximum £100,000 gross value of such property is situated outside the UK;

The only chargeable transfers in the seven years be- fore death are ‘specified transfers’ that do not exceed £150,000 (ignoring business property relief and agricultural property relief); and

• The total gross value (ignoring exemptions, reliefs, and liabilities) of the estate, plus ‘specified transfers’ and ‘specified exempt transfers’ does not exceed either:

(1) The inheritance tax threshold (‘nil rate band’, pres- ently £325,000), or
(2) £1 million, and the net chargeable estate (after de- ducting liabilities and any spouse or charity exemption on death) does not exceed the threshold.