HMRC has released an updated version of the Inheritance Tax account form (
IHT400). This is the main form used as part of the probate or confirmation process where there is Inheritance Tax due or if the deceased's
estate does not qualify as an 'excepted estate'. Box 2 on the IHT400 calculation form has been updated.
Inheritance Tax is levied on a person’s
estate when they die and can also be payable during a person’s lifetime on certain trusts and gifts.
The rate of Inheritance Tax payable is 40% on death and 20% on lifetime gifts. There is a nil-rate band, currently £325,000 below which no Inheritance Tax is payable.
The main residence nil-rate band (RNRB) is a transferable £175,000 allowance for married couples and civil partners (per person) when their main residence is passed down to a direct descendent such as children or grandchildren after their death. The RNRB is on top of the £325,000 Inheritance Tax nil-rate band threshold. There are also a number of Inheritance Tax reliefs including a reduced rate of 36% which applies when 10% or more of a net estate is left to charity.
If you are looking for support with your inheritance tax, please get in touch with a member of our
tax team.