What is an IHT400 Refund Form
In the UK, Inheritance Tax (IHT) is a tax on the estate of someone who has died. The estate includes everything that the deceased owned, including property, investments, and personal possessions. The executor or administrator of the estate is responsible for paying any IHT that is due.
If you believe that you have overpaid IHT, you may be entitled to a refund. To claim a refund, you will need to complete the IHT400 form, which is also known as the Inheritance Tax Account.
How to Complete IHT400 Form
The IHT400 form is a detailed account of the estate and the calculation of the IHT due. The form is divided into sections, each of which must be completed in full. The sections are as follows:
The deceased: This section includes information about the deceased, such as their name, date of birth, and date of death.
The estate: This section includes information about the estate, such as the value of the assets and any debts that are owed.
The executors: This section includes information about the executors of the estate, such as their names and addresses.
The beneficiaries: This section includes information about the beneficiaries of the estate, such as their names and addresses.
The IHT calculation: This section includes a detailed calculation of the IHT due, taking into account any exemptions or reliefs that may apply.
The payment of IHT: This section includes information about the payment of IHT, such as the due date for payment and the methods of payment.
The declaration: This section includes a declaration that the information provided is true and accurate to the best of your knowledge.
Completing the IHT400 form can be a complex and time-consuming process. You will need to gather information about the estate, such as the value of the assets and any debts that are owed. You may also need to seek professional advice, such as from a solicitor or accountant, to ensure that the form is completed correctly.
Once you have completed the IHT400 form, you will need to submit it to HM Revenue & Customs (HMRC), along with any supporting documents that are required. HMRC will review the form and the supporting documents, and if everything is in order, they will issue a refund of any overpaid IHT.
How to Submit the IHT400 Form?
Submitting an IHT400 form in the UK involves several steps, which are outlined below:
Obtain the form: The IHT400 form is available for download from the HM Revenue & Customs (HMRC) website or can be requested by post. You can also fill out the form online using HMRC's online service.
Gather information and documentation: Before starting to fill out the form, you will need to gather all the relevant information and documentation related to the estate, such as the value of the assets, debts, and liabilities, and any gifts made by the deceased person.
Complete the form: Once you have all the necessary information, you can begin to fill out the IHT400 form. You will need to provide details about the deceased person, the value of the estate, and any relevant exemptions or reliefs.
Submit the form: Once the form is completed, you will need to sign and date it, and submit it to HMRC. You can submit the form online or by post. If you choose to submit the form by post, it is recommended to send it via recorded or registered delivery.
Wait for processing: After submitting the form, you will need to wait for HMRC to process it. The processing time can vary depending on the complexity of the estate and the volume of claims that HMRC is processing at the time of submission.
Pay any tax owed: If the estate is liable for Inheritance Tax, HMRC will send a written confirmation of the amount owed and any deadlines for payment. The tax must be paid before the estate can be distributed to the beneficiaries.
Receive a refund (if applicable): If the estate is eligible for a refund of Inheritance Tax, HMRC will issue the refund as soon as possible after processing the form.
Overall, submitting an IHT400 form in the UK can be a complex and time-consuming process. It is recommended to seek professional advice from a solicitor or accountant to ensure that the form is completed accurately and in compliance with all applicable rules and regulations.
How Long Does It Take for HMRC to Process IHT400?
The processing time for an IHT400 refund form can vary, depending on the complexity of the estate and the volume of claims that HMRC is processing. HMRC aims to process most claims within 6 to 9 months of receipt.
It's important to note that the IHT400 form is not the only form that may be required when dealing with an estate. There may be other forms that need to be completed, such as the IHT205 form, which is used for smaller estates that are exempt from IHT.
What Is an IHT205 Refund Form
An IHT205 form is a form used in the United Kingdom to apply for a refund of Inheritance Tax (IHT) when the estate of a deceased person is below the IHT threshold, or when the estate qualifies for an exemption or relief from IHT.
The IHT205 form is also known as an "excepted estate form" because it is used for estates that are exempt from the full IHT process. The form is simpler and quicker to complete than the IHT400 form, which is used for larger or more complex estates.
To use the IHT205 form, the value of the estate must be below the current IHT threshold, which is £325,000 for the tax year 2022/23. If the estate is worth more than this amount, or if there are other factors that require a full IHT account, then the IHT400 form must be used instead.
The IHT205 form asks for basic information about the deceased person, their estate, and the beneficiaries. It also includes a statement of truth that must be signed by the executor or administrator of the estate. Once the form is completed, it should be submitted to HM Revenue & Customs (HMRC) along with any supporting documents, such as a death certificate and a grant of probate.
If the application is successful, HMRC will issue a refund for any IHT that was overpaid on the estate. The processing time for an IHT205 refund form is typically faster than for an IHT400 form, with most claims being processed within a few months.
Conclusion
If you believe that you have overpaid IHT, you may be entitled to a refund. To claim a refund, you will need to complete the IHT400 form, which is a detailed account of the estate and the calculation of the IHT due. The form can be complex and time-consuming to complete, and you may need professional advice to ensure that it is completed correctly. HMRC will review the form and the supporting documents, and if everything is in order, they will issue a refund of any overpaid IHT.