• John Murphy AIPW

HMRC commits to deadline


IHT submission to HMRC

The HMRC has responded to complaints about responding in a timely manner to decisions on IHT400 forms. To help Personal Representatives (PR) to manage probate in a more efficient manner and with greater certainty there is a now a twelve week limit following issue of IHT421 for HMRC to request further details or require a full compliance check.


The previous procedure aimed to issue IHT421 within ten days of receiving the IHT400 form. HMRC would then have between sixteen and twenty weeks from receipt of the IHT400 to respond on clarifications and questions.


Starting in April the process will still expect an IHT421 form to be issued within ten days of receiving the IHT400. The main difference is in reducing the time HMRC have to challenge the submission.


It is possible that the IHT421 could be issued and the estate is granted immediate clearance. This would then allow PR's to proceed in the knowledge that HMRC will have no further questions to ask on the IHT400 and that all tax implications have been met.


Anyone who takes on the responsibility of a PR (or more commonly known as an executor) should understand their responsibilities in relation to HMRC as this can be a complex and timely process to comply with.


Any tax to be paid on a deceased's estate would need to be paid before probate is granted and this could lead the PR's having to fund this bill as the estate funds would not be available.


For further details on IHT and other tax implications please contact us at Zen Legacy

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Zen Legacy is a trading style of Zen Financial Services Ltd, 27 Westcoombe Avenue, Wimbledon, SW20 0RQ.  On behalf of APS Legal & Associates Ltd, Head office: Worksop Turbine Innovation Centre, Shireoaks Triangle Business Park, Coach Close, Worksop, Nottinghamshire, S81 8AP