IHT400 Notes : Guide to completing your Inheritance Tax account

Changes to the
administration of
an estate
Inheritance Tax and
the grant
IHT400 Notes
Wartime compensation
payments
Guide to completing your Inheritance Tax account
Where there are to be changes in the administration of an estate, you can
apply for a grant to allow the administration to continue, provided the
assets concerned were included in an earlier grant.
England, Wales and Northern Ireland
You must use form Cap A5C (available from our helpline) (or form Cap A5N
in Northern Ireland) if you are applying for a:
• Grant of double probate — Where an executor (perhaps due
to ill health) was not party to
the initial grant, but on regaining
health the executor wishes to take
up office.
• Grant de bonis non administratis — When the only or last surviving
executor dies without fully dealing
with the estate.
When you have filled in the form, send it to the Probate Registry.
Please do not send it to us first.
Scotland
If you need an 'Eik to Confirmation' for additional assets or to amend an
estate, you should fill in form C4(S) Corrective Inventory and Account and
send it to us. After we have checked it, we will stamp and return the form
to you so you can send it to the Sheriff or Commissary Clerk. If you need an
'Eik to Confirmation ad non executa' (where the estate has not been fully
administered and none of the original executors, or substitutes, remain in
office) you should get form X-1 from the Sheriff or Commissary Clerk.
You must pay any Inheritance Tax and interest that is due before you can
get a grant. Tax on certain assets may be paid by 10 annual instalments.
The law says that we must charge interest from the first day of the seventh
month after the month in which the person died.
For example, if a person dies on 7 January, we charge interest from
1 August. It does not matter why you have not paid the tax by then.
Interest will still be due.
There is more information about instalments later in this guide on page 53.
If the deceased received a compensation payment during their lifetime for
personal harm suffered at the hands of the Japanese or Nazi Governments,
you should reduce the amount of tax charged on the estate by the smaller of:
• 40% of the payments received, or
• the amount of tax payable before allowing the deduction.
For example, the deceased received a payment of £10,000, which would
give a deduction of £10,000 x 40% = £4,000. The Inheritance Tax on the
estate before the deduction was £5,000. The tax can be reduced by £4,000.
To apply the reduction you should include the figure for the reduction in
tax at box 17 on form IHT400 Calculation. Applying the reduction can only
reduce the tax liability to nil, it cannot result in a repayment of tax.
7