IHT changes to affect confirmations
7 Oct 04
Changes to "excepted estates" rules from 1 November 2004 affect applications for confirmation
With effect from 1 November 2004, the excepted estate regulations are being extended so that an estate may now qualify where the gross value for inheritance tax purposes, plus the chargeable value of certain transfers made in the seven years prior to death, does not exceed the IHT threshold (instead of £240,000), although this will be subject to some limitation for applications made after 5 April and before 6 August in any year; or £1,000,000 and the net chargeable estate after deduction of only spouse and/or charity exemption is less than the IHT threshold.
These changes take effect for all applications for confirmation made on or after 1 November 2004 in respect of deaths on or after 6 April 2004. There are consequential changes to the process to apply for confirmation.
With effect from 1 November the inventory will need to be accompanied by form C5 (or C5(OUK) for those domiciled abroad; C5(SE) for a small estate) where the estate qualifies as an excepted estate, or stamped and authorised by IR Capital Taxes.
For an estate that does not qualify as an excepted estate, form IHT200 together with the inventory must be sent to IR Capital Taxes in every case, not just where there is tax to pay. The sheriff clerk will no longer issue confirmation in such cases unless IR CT have stamped and authorised the inventory.
The back page of the inventory form C1 will be changed and with effect from 1 November, the sheriff clerk will only accept this new version of the inventory.
The new forms will be available through commercial software providers and for download from the Inland Revenue website. If you wish to use a paper form you can order these from the Revenue’s Orderline on 0845 234 1000.