IHT reporting requirement?

IHT reporting requirement?

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I really ought to know this, but ...

A relevant property trust that is and always has been well within the 0% IHT rate makes a capital distribution to a beneficiary.  Had the value been (a lot) greater, there would have been a proportionate exit charge, but not in this case because of the numbers.

Is there any reporting requirement at all?

Thanks

With kind regards

Clint Westwood

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By CrowtherP
30th Sep 2015 14:13

260000 If i understand this correctly?

My understanding of SI 2008 / 606 is that fundamentally the value of the trust has to be < £260K.

The S.I. 2008/ 606 is written in horrid legalese, but refers to section 64 IHTA [the charge at 10 year anniv.] and section 68 IHTA [the charge before the first 10-year anniv.].  If there have been addition to the trust, then sensibly these additions have to be included. See:

http://www.legislation.gov.uk/uksi/2008/606/regulation/4/made

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By maxaca
30th Sep 2015 14:14

If the value exceeds 80% of the nil rate band - that would currently be GBP260,000 then a return is due, although there may not be any tax since it sounds as though the effective rate in this case is 0%.

There is now a 6 month reporting (& payment) deadline.

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By nogammonsinanundoubledgame
30th Sep 2015 19:03

Thanks

Made the question worthwhile for me.  Great, thanks.

With kind regards

Clint Westwood

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