IHT400 Notes : Guide to completing your Inheritance Tax account

IHT400 Notes
Delivering a reduced
account when there is
no tax to pay
Death on active service
Guide to completing your Inheritance Tax account
• When the deceased left no estate and the grant is needed only for
assets (not settled land) of which the deceased was a trustee, you only
need to fill in boxes 1 to 22 and the declaration on pages 12 and 13 of
form IHT400. You do not need to include the assets in the account,
or fill in boxes 23 to 118 of form IHT400.
If there is no tax to pay because most or all of the estate is exempt from
Inheritance Tax, you may be able to fill in a reduced form IHT400. You
should first check to see if the estate is an excepted estate by reading
pages 1 to 3 of this guide. If it is an excepted estate you should use form
IHT205 Return of estate information and not read any more of this guide.
To be able to fill in a reduced form IHT400 the deceased must have been
domiciled in the UK at the date of death and there must be assets or
legacies passing under the Will or intestacy to one of the following
exempt beneficiaries:
• the deceased's surviving spouse or civil partner – either directly or to a
trust the spouse or civil partner has the right to benefit from
• a qualifying charity
• a UK national body such as the British Museum or the National Trust.
If you need to know whether a particular national body or charity qualifies
for the exemption you should call the Probate and Inheritance Tax Helpline
on 0845 30 20 900 for advice.
You will then need to add together the gross value (the value before taking
off liabilities, reliefs or exemptions) of any assets passing to anyone other
than the exempt beneficiaries listed above and any of the following which
are not passing to exempt beneficiaries:
• the deceased's share of any jointly owned assets
• any assets the deceased gave away in the seven years before death
• any assets the deceased gave away, but in which they reserved a benefit
• assets outside the UK that do not pass under the UK Will or intestacy.
If the total is less than or equal to the Inheritance Tax nil rate band then
you may fill in a reduced form IHT400. If you are claiming a transfer of
unused nil rate band, you may add that to the nil rate band at the date of
death. If the total is less than the nil rate band and transfer of unused nil
rate band, you may fill in a reduced form IHT400.
If the deceased was a member of the armed forces or certain associated
services whose death was caused by injury or disease on active service
there is a complete exemption from Inheritance Tax on the estate passing
on death. A reduced form IHT400 can be delivered if this applies. The
exemption does not cover lifetime gifts.
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