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HMRC publishes IHT checklist

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15th Oct 2012
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HMRC has published new guidance on inheritance tax (IHT). The guidance on how to prepare inheritance tax account form IHT400 applies to deaths from 6 April.

The IHT checklist, bought to AccountingWEB’s attention by Smith & Williamson, includes:

  • Checking that any pension scheme lump sum death benefits have been included on form IHT409
  • Full details of all lump sum death benefits paid from the deceased’s pension schemes should be reported on form IHT409 whether or not they are chargeable to Inheritance Tax. This is frequently overlooked
  • Some lump sum death benefit payments are chargeable to inheritance tax whether or not the payment is made to the estate. A payment that is made to the estate or the personal representatives as of right is chargeable. Similarly, if the deceased pension scheme member had a general power to direct such a payment to specified beneficiaries with a binding nomination, it is within the estate and chargeable
  • How to apply the reduced rate of inheritance tax where the deceased leaves at least 10% of their net estate to charity (applies for deaths on or after 6 April 2012)

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