Mark McLaughlin outlines circumstances where full inheritance tax returns do not need submitting to HMRC due to measures to ease administrative burdens.
Death and taxes are inevitable, it is said. However, the last thing family members and friends probably want to think about following the death of a loved one is submitting an inheritance tax (IHT) return to HM Revenue and Customs (HMRC).
You’re excused …
Fortunately, an IHT return (on form IHT400) does not generally need to be submitted to HMRC in respect of 'excepted estates’ if there is no IHT to pay. There are three categories of excepted estates: low value, exempt excepted and foreign domiciliaries.
In very broad terms, an estate will usually be excepted if any of the following apply:
- its value is below the current IHT threshold;