Form-filling for HM Revenue & Customs

In Chapter 13, I showed you how to go about letting the tax-collector know the value of the deceased's estate. Form IHT 205 in England and Wales, and Form C1 in Scotland set out the assets of the deceased. If, after any debts and transfer of property to a spouse was taken into account, the estate was worth less than £300,000 (2007/08), rising to £312,000 in April 2008 then you have finished with the tax-collector as far as IHT is concerned.

Otherwise, the tax-collector wants to know more – aren't you lucky!

You need to fill in and submit form IHT 200, a full statement of the deceased's accounts. In short, the snappily-named Form IHT 200 is a souped-up version of Form IHT 205 and the Scot's Form C1. Similar areas are covered but in greater depth. Form IHT 200, which covers England, Wales, and Scotland, comes with lots of supplementary pages.

The supplementary pages that you're most likely to use cover the following areas:

Form-filling for HM Revenue & CustomsPages D3, D4, D5, and D6 ask for details of gifted property and assets held in trust, death benefits paid under pension policies, plus any property held on a joint tenancy basis.

Form-filling for HM Revenue & CustomsPage D7 relates to stocks and shares and asks for a rundown of all the deceased's holdings. If the deceased held any investment trusts or unit trusts, then the fund manager will supply a valuation but they need to see a copy of the death certificate before doing so.

Form-filling for HM Revenue & CustomsPage D12 asks for details of any buildings and land owned by the deceased. You need the property's open market value and a copy of the tenancy agreement if it's let.

Form-filling for HM Revenue & Customs

Don't deduct the mortgage from the valuation. However, if the deceased only owned a share of the property, just give the value of that share and not the value of the whole property.

All the executors or administrators must sign Form IHT 200. This form must be submitted before probate, letters of administration, or confirmation (in Scotland) can be granted.

If you need help, then Form IHT 210 explains how to fill out Form IHT 200, while Form IHT 213 helps you work out if any tax is due. You can get the forms from your local tax office or download them from www.hmrc.gov.uk. If you'd like over-the-phone guidance, call the HMRC helpline on 0845 30 20 900.

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