IHT400 Notes : Guide to completing your Inheritance Tax account

IHT400 Notes
Contributions to a
pension scheme within
two years of death
Alternatively secured
pension funds
Guide to completing your Inheritance Tax account
Where the deceased has given away any benefits, or has made some
changes to the benefits they were entitled to, it is possible that they may
have made a transfer of value. Enter the details we ask for above on
Schedule IHT409 and we will look at what you have said after the grant has
been issued. If we think there has been a transfer of value, we will discuss
the value with you.
If you wish to include your own value for the benefits given away,
enter a figure on Schedule IHT403 Gifts and other transfers of value.
Use the 'Additional information' boxes on pages 15 and 16 on form IHT400
to show how you have arrived at your value.
Valuing the benefits given away
The value of the benefits given away or the impact of the changes made
will depend to a large extent on the deceased's health at the date of the
transfer, nomination, appointment or change. Please provide some
evidence of the deceased's state of health and life expectancy at that time
so we can establish the value. A letter from the deceased’s doctor is the
best sort of evidence.
If getting a letter from the deceased's doctor will delay your application for
a grant, you do not have to have it before you send form IHT400 to us.
However, we will need to see the letter as soon as you receive it after the
grant has been issued.
Contributions to a pension scheme by the scheme member or their
employer may be a transfer of value (gift) if the contributions are made
when the scheme member is in ill health.
This can only apply where the members date of death was between
6 April 2006 and 5 April 2011 inclusive and the date of birth was
between 6 April 1931 and 21 June 1935 inclusive.
An alternatively secured pension fund (ASP) is a fund of money in a
registered pension scheme that has been earmarked for the benefit of a
member or a dependant (who is aged 75 or more) but has not been used
to secure a pension by buying a pension through the scheme or an annuity
(other than a short term annuity payable for no more than five years).
A 'dependant' of a member of a registered pension scheme is a person
who, at the date of the scheme member's death, was:
• the spouse or civil partner of the member
• a child of the member who was under the age of 23
• a child of the member who was aged 23 or over and in the opinion of
the scheme administrator was dependent on the scheme member
because of physical or mental impairment.
A 'relevant dependant' is a dependant who, at the date of the scheme
member's death, was:
• the spouse or civil partner of the scheme member, or
• financially dependent on the member at that time.
29