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What is HMRC Form IHT404?

Updated: May 17


Understanding the Basics of HMRC Form IHT404 in the UK


What is HMRC Form IHT404?

The HMRC Form IHT404, also known as the Account of Estate Information form, is a crucial document used in the United Kingdom for inheritance tax purposes. It is designed to establish the value of an individual's estate after their death. The form is used in conjunction with Form IHT400 and provides details of all UK assets that the deceased owned jointly with another person.


What is HMRC Form IHT404


Who Needs to Complete the Form?

If you are the executor of an estate, or if you are acting on behalf of the executor, then you will need to complete the IHT404 form. The executor is the person responsible for administering the estate of the deceased, which includes paying any outstanding debts and distributing the assets to the beneficiaries. In cases where there is no executor named in the deceased’s will, an administrator will be appointed by the court to carry out these duties. The administrator is also responsible for completing the IHT404 form.


What Information is Required?


The form requires detailed information about the assets and liabilities of the estate. Here are some of the key components:


Assets

  • Property: Includes any real estate owned by the deceased, such as houses or land.

  • Investments: Stocks, shares, bonds, and other financial investments.

  • Personal Possessions: Valuable items like artwork, antiques, and jewelry.

  • Bank Accounts: Savings accounts, checking accounts, and other financial accounts.

  • Other Assets: Cars, boats, and other personal property.


Liabilities

  • Debts: Outstanding debts like credit card debt, loans, and mortgages.

  • Funeral Expenses: Costs related to the funeral and burial of the deceased.


Additional Information

  • Beneficiaries: Names and addresses of those who will receive a portion of the estate.

  • Will: A copy of the deceased’s will, if available.

  • Probate: Information about the probate process, including the date probate was granted and the name of the probate court.


Deadlines and Penalties

The IHT404 form must be completed and submitted to HMRC within one year of the date of death. Failure to meet this deadline can result in penalties and interest charges. It's crucial to adhere to this timeline to avoid any legal complications.


How to Fill Out the Form

Filling out the IHT404 can be a complex and time-consuming process. The first step involves gathering all the necessary information about the assets and liabilities of the estate. This may require contacting various financial institutions to obtain statements and other documentation. Once all the information is gathered, you can proceed to complete the form, which is divided into several sections. Each section requires specific information about the estate, so it's important to read each one carefully and provide accurate details.



Navigating the Complexities of Inheritance Tax and Submission Process


Calculating the Inheritance Tax

Once you've filled out the IHT404 form with all the necessary details about the estate's assets and liabilities, the next step is to calculate the inheritance tax owed. This is a crucial aspect that requires meticulous attention, as several factors can affect the final amount. These factors include the total value of the estate and the relationship between the deceased and the beneficiaries.


Exemptions and Reliefs

It's important to note that certain exemptions and reliefs may apply, reducing the overall inheritance tax liability. For example, assets passed between spouses or civil partners are generally exempt from inheritance tax. Additionally, if the deceased left a certain percentage of their estate to charity, it could reduce the tax rate on some assets.


Tax Bands and Rates

In the UK, the standard inheritance tax rate is 40% on the portion of the estate above the £325,000 threshold. However, this rate may vary depending on specific circumstances, such as gifts given within seven years before death. Understanding these nuances can help you accurately calculate the tax owed.


Submitting the Form to HMRC

After calculating the inheritance tax, the next step is to submit the completed IHT404 form to HM Revenue and Customs (HMRC). This can be done either online or by mail. It's imperative to submit the form within one year of the date of death to avoid penalties and interest charges.


Payment Methods

The executor or administrator is responsible for paying the inheritance tax owed. This may require liquidating some assets or obtaining a loan to cover the tax liability. Therefore, it's crucial to plan ahead to ensure there are sufficient funds available for this purpose.


Additional Forms and Documents

Alongside the IHT404 form, you may also need to submit other forms and documents, such as the Grant of Probate or Letters of Administration. These legal documents give the executor or administrator the authority to manage the estate and distribute the assets to the beneficiaries.


Seeking Professional Advice

Given the complexities involved in calculating inheritance tax and submitting the IHT404 form, it's often advisable to seek professional advice. Tax advisors or estate planning experts can guide you through the process, ensuring that you meet all legal and tax requirements. They can also help you take advantage of any exemptions or reliefs that may apply, potentially saving you a significant amount of money.


Filling Out Different Sections of the IHT404 Form


How to Fill the IHT404 Form: A Step-by-Step Guide

The IHT404 form is used to detail jointly owned assets for inheritance tax purposes. It is essential to provide accurate and complete information to ensure proper valuation and taxation of the deceased's estate. This guide will walk you through each section and question of the IHT404 form, suggesting possible answers to help you fill it out correctly.


The IHT404 form is used to report jointly owned assets. Do not include jointly owned assets outside the UK or those owned jointly by a business or partnership. If joint assets include real estate, you must also complete form IHT405. Assets owned jointly where the deceased provided all the money should be reported fully, and withdrawals by other joint owners may need to be included in form IHT403.


Basic Information


Name of the deceased: [Enter the full name of the deceased]

Date of death: DD/MM/YYYY

Inheritance Tax reference number: [Enter the reference number if known]


Section 1: Jointly Owned Assets

This section should only contain details of jointly owned houses, buildings, land, shares, and securities that gave the deceased control of the company. If there are no such assets, write ‘0’ in box 1.


  1. Number each item: Assign a number to each asset (1, 2, 3, etc.).

  2. Description of asset: Provide a detailed description of each asset. For example, "Deceased’s house, freehold."

  3. Names of other joint owners and their relationship to the deceased: List the names and relationships of other joint owners.

  4. Date joint ownership started: Enter the date when joint ownership began.

  5. Contribution by each joint owner: Indicate the contribution by each joint owner as fractions or monetary values.

  6. Share of income received by each joint owner (if any): List any income received by each joint owner.

  7. Value of the whole item at the date of death: Provide the total value of each asset.

  8. Value of the deceased’s share at the date of death: Provide the value of the deceased’s share.


Total value of the deceased’s share: Add together all entries in column G and enter the total in box 1.


Section 2: Liabilities for Jointly Owned Assets

Provide details of any mortgages or loans secured against the jointly owned assets listed in box 1. Do not include household bills.


  1. Item number: Reference the item number from box 1.

  2. Description of the liability: Describe the liability (e.g., mortgage).

  3. Name of creditor: Provide the name of the creditor.

  4. Total amount outstanding at the date of death: Enter the total outstanding amount.

  5. Deceased’s share of the amount outstanding: Enter the deceased’s share of the outstanding amount.


Total amount of the deceased’s share: Add together all entries and enter the total in box 2.


Section 3: Net Assets

Calculate the net assets by subtracting box 2 from box 1. Enter the result in box 3.


Section 4: Exemptions and Reliefs for Jointly Owned Assets

List any exemptions or reliefs claimed on the jointly owned assets shown in box 1. Do not include discount for jointly owned assets.


  1. Item number: Reference the item number from box 1.

  2. Details of relief or exemption deducted: Describe the relief or exemption (e.g., spouse exemption).

  3. Amount of exemption or relief: Enter the amount of the exemption or relief.


Total amount of exemptions and reliefs: Add together all entries and enter the total in box 4.

Net total of jointly owned assets: Subtract box 4 from box 3 and enter the result in box 5.


Section 6: Other Jointly Owned Assets

Provide details of other jointly owned assets not listed in box 1, such as bank accounts, household, and personal goods. If there are none, write ‘0’ in box 6.


  1. Number each item: Assign a number to each asset (1, 2, 3, etc.).

  2. Description of asset: Provide a detailed description of each asset.

  3. Names of other joint owners and their relationship to the deceased: List the names and relationships of other joint owners.

  4. Date joint ownership started: Enter the date when joint ownership began.

  5. Contribution by each joint owner: Indicate the contribution by each joint owner as fractions or monetary values.

  6. Share of income received by each joint owner (if any): List any income received by each joint owner.

  7. Value of the whole item at the date of death: Provide the total value of each asset.

  8. Value of the deceased’s share at the date of death: Provide the value of the deceased’s share.


Total value of the deceased’s share: Add together all entries in column G and enter the total in box 6.


Section 7: Liabilities for Other Jointly Owned Assets

Provide details of any liabilities to be deducted from the other jointly owned assets listed in box 6.


  1. Item number: Reference the item number from box 6.

  2. Description of the liability: Describe the liability (e.g., overdrawn bank account).

  3. Name of creditor: Provide the name of the creditor.

  4. Total amount outstanding at the date of death: Enter the total outstanding amount.

  5. Deceased’s share of the amount outstanding: Enter the deceased’s share of the outstanding amount.


Total amount of the deceased’s share: Add together all entries and enter the total in box 7.


Section 8: Net Assets

Calculate the net assets by subtracting box 7 from box 6. Enter the result in box 8.


Section 9: Exemptions and Reliefs for Other Jointly Owned Assets

List any exemptions or reliefs claimed on the other jointly owned assets shown in box 6. Do not include discount for jointly owned assets.


  1. Item number: Reference the item number from box 6.

  2. Details of relief or exemption deducted: Describe the relief or exemption (e.g., charity exemption).

  3. Amount of exemption or relief: Enter the amount of the exemption or relief.


Total amount of exemptions and reliefs: Add together all entries and enter the total in box 9.

Net total of jointly owned assets: Subtract box 9 from box 8 and enter the result in box 10.


Section 11: Survivorship Assets

Indicate whether any of the assets listed in box 1 or box 6 passed to the other joint owner(s) by survivorship.


  • If no, enter ‘0’ in box 11 (column B).

  • If yes, list the assets that passed by survivorship in column A and the liabilities deducted from those assets in column B.


Total of column A: Enter the total value of the deceased’s share before deduction of liabilities and exemptions. Total of column B: Enter the total value of liabilities deducted.

Total value of survivorship assets: Subtract the total of column B from column A and enter the result in box 11.


Section 12: Final Calculations

  1. Box 2 plus box 7 minus box 11 (column B): Calculate the total and enter the result in box 12.

  2. Box 2 plus box 4 plus box 7 plus box 9: Calculate the total and enter the result in box 13.


Copy the amounts from boxes 5 and 10 to the relevant sections in form IHT400.

By following this step-by-step guide, you can ensure that the IHT404 form is completed accurately, reflecting the correct values and details of the jointly owned assets for inheritance tax purposes. Always refer to the guidance notes in IHT400 for additional information and clarification.



Common Pitfalls to Avoid and Best Practices to Follow


Common Mistakes and How to Avoid Them

When dealing with HMRC Form IHT404, there are several common mistakes that people often make, which can lead to complications and financial penalties. Here are some of them:


Incomplete Information

One of the most common errors is submitting the form with incomplete or incorrect information. This can delay the probate process and result in penalties. Always double-check the form for accuracy before submission.


Missing Deadlines

Failure to submit the form and pay the inheritance tax within the stipulated time frame can result in late fees and interest charges. Mark the deadlines on your calendar to avoid this mistake.


Overlooking Exemptions and Reliefs

Many people are unaware of the various exemptions and reliefs available, such as spousal exemptions or charitable donations. Overlooking these can result in higher tax liability.


Not Seeking Professional Help

Given the complexities involved, not seeking professional advice can be a costly mistake. Tax advisors can provide valuable insights into reducing tax liability and ensuring compliance.


Best Practices to Follow

To navigate the complexities of HMRC Form IHT404 effectively, here are some best practices to follow:


Keep Records

Maintain comprehensive records of all assets and liabilities, as well as any gifts made within the last seven years. This will make filling out the form easier and more accurate.


Communicate with Stakeholders

Keep open lines of communication with all stakeholders, including beneficiaries and financial institutions. This ensures that everyone is on the same page and can help expedite the process.


Use Online Services

HMRC offers online services for submitting forms and making payments, which can save time and reduce the risk of errors.


Consult a Professional

Given the financial and legal implications, consulting a tax advisor or estate planning expert is often advisable. They can guide you through the process and help you optimize your tax position.


The Relationship Between HMRC Form IHT404 and HMRC Form IHT400


The Relationship Between HMRC Form IHT404 and HMRC Form IHT400: A Comprehensive Guide


Introduction to HMRC Forms IHT404 and IHT400

When it comes to dealing with inheritance tax in the United Kingdom, two forms often come into play: HMRC Form IHT404 and HMRC Form IHT400. While both forms are integral to the inheritance tax process, they serve different purposes and require different sets of information. Understanding the relationship between these two forms is crucial for anyone responsible for administering an estate.


The Role of HMRC Form IHT400

Form IHT400, also known as the "Inheritance Tax Account," is the primary form used to report the value of an estate for inheritance tax purposes. This comprehensive form covers all aspects of an estate, including assets, liabilities, gifts, and reliefs. It is the form that provides HM Revenue and Customs (HMRC) with an overall picture of the estate's value and the inheritance tax due.


Key Components of IHT400


  • Assets: Information about all the assets owned solely by the deceased, such as real estate, bank accounts, and investments.

  • Liabilities: Details of any debts or financial obligations the deceased had at the time of death.

  • Gifts: Information about any gifts made by the deceased in the seven years prior to death.

  • Exemptions and Reliefs: Details of any applicable exemptions or reliefs, such as spousal or charitable exemptions.


The Role of HMRC Form IHT404

While Form IHT400 provides a broad overview of the estate, Form IHT404 focuses specifically on jointly-owned assets. This form is used to give a detailed account of assets that the deceased owned in partnership with another individual. It's an essential supplement to the IHT400 form, providing HMRC with a more nuanced understanding of the estate's value.


Key Components of IHT404


  • Jointly-Owned Property: Information about any real estate owned jointly by the deceased and another person.

  • Joint Bank Accounts: Details of any financial accounts held jointly.

  • Other Joint Assets: Information about other jointly-owned assets like investments or valuable items.


The Interplay Between IHT404 and IHT400

The relationship between these two forms is symbiotic. Form IHT400 may require additional forms like IHT404 to provide a complete picture of the estate. For example, if the deceased owned a home with a spouse, the details of this joint ownership would be reported on Form IHT404, while the overall value of the estate, including this jointly-owned home, would be reported on Form IHT400.


Importance of Accuracy and Consistency

It's crucial that the information provided on both forms is accurate and consistent. Any discrepancies between the two can raise red flags and may lead to delays in the probate process or even financial penalties.


Submission Process

Both forms should be submitted to HMRC, and it's advisable to submit them together to ensure that the inheritance tax calculation is accurate. The deadline for submission is typically within one year of the date of death.


Understanding the relationship between HMRC Form IHT404 and HMRC Form IHT400 is essential for accurate inheritance tax reporting. While the IHT400 form provides a comprehensive overview of the estate, the IHT404 form delves into the specifics of jointly-owned assets. Together, these forms offer HMRC a complete picture of the estate's value, ensuring that the correct amount of inheritance tax is calculated and paid. Therefore, if you're responsible for administering an estate, it's crucial to familiarize yourself with both forms and understand how they complement each other in the inheritance tax process.


Navigating the intricacies of HMRC Form IHT404 can be a daunting task, but with careful planning and attention to detail, it's possible to manage the process efficiently. By avoiding common pitfalls and following best practices, you can ensure that you fulfill your responsibilities as an executor or administrator, while also minimizing the inheritance tax liability.


The Latest Updates on HMRC Form IHT404 in 2024

HMRC Form IHT404 is a crucial document used in the UK for reporting joint assets when dealing with inheritance tax. As of 2024, HM Revenue and Customs (HMRC) has introduced several updates to this form to streamline the reporting process, enhance clarity, and ensure accuracy in the valuation of jointly owned assets. This comprehensive overview will delve into the latest updates and their implications.


Overview of Form IHT404

Form IHT404, titled "Jointly owned assets," is used to declare any assets jointly owned by the deceased and other individuals. These assets may include bank accounts, property, and other investments. The form helps HMRC determine the deceased's share of these assets and the associated inheritance tax liabilities.


Key Updates in Form IHT404


1. Digital Submission Enhancements

To improve efficiency, HMRC has bolstered the digital submission capabilities of Form IHT404. Executors and estate representatives can now submit this form electronically via the HMRC online portal. This enhancement reduces paperwork, speeds up processing times, and minimizes the risk of errors typically associated with manual submissions.


  • Benefits of Digital Submission:

  • Faster processing and response times.

  • Immediate confirmation of receipt.

  • Reduction in postal delays and potential losses.


2. Streamlined Layout and Instructions

The form has undergone a significant redesign to simplify its layout and instructions. Each section now includes clear, step-by-step guidelines to help users complete the form accurately. This user-friendly approach is particularly beneficial for executors who may not have extensive experience with inheritance tax forms.


  • Key Changes:

  • More intuitive section headings and subheadings.

  • Detailed examples illustrating common scenarios.

  • Simplified language to make the form accessible to a wider audience.


3. Updated Valuation Guidelines

HMRC has revised the guidelines for valuing jointly owned assets. These updates reflect current market conditions and provide more precise methods for determining the value of different types of jointly held assets. The guidelines cover various asset classes, including:


  • Bank Accounts: Detailed instructions on obtaining the balance at the date of death and apportioning it correctly.

  • Property: Updated methods for valuing jointly owned real estate, considering current property market trends.

  • Investments: Clearer rules for valuing jointly held stocks, bonds, and other investment vehicles.


4. Integration with Other IHT Forms

To ensure consistency and reduce redundancy, Form IHT404 has been better integrated with other inheritance tax forms, particularly Form IHT400 (Inheritance Tax Account) and Form IHT402 (Claim to Transfer Unused Nil Rate Band). This integration helps executors avoid duplicating information and ensures a more seamless reporting process.


  • Benefits of Integration:

  • Consistency in reported information across different forms.

  • Reduced risk of conflicting data entries.

  • Streamlined workflow for completing multiple forms.


5. Increased Reporting Thresholds

The financial thresholds for reporting certain jointly owned assets have been adjusted to account for inflation and economic changes. This update means that smaller joint assets may no longer need to be reported, reducing the administrative burden on executors.


  • Threshold Adjustments:

  • Higher thresholds for reporting joint bank accounts.

  • Adjusted limits for jointly owned property valuations.

  • New guidelines for assessing the need to report small joint investments.


6. Enhanced Online Help and Support

Recognizing the need for additional support, HMRC has expanded its online help resources for Form IHT404. These resources include comprehensive guides, FAQs, and video tutorials designed to assist users in completing the form accurately.


  • Available Resources:

  • Step-by-step video guides on filling out Form IHT404.

  • Interactive FAQs addressing common questions and issues.

  • Downloadable guides with detailed explanations and examples.


7. Automated Calculations and Checks

To further reduce errors, HMRC has introduced automated calculations and error-checking features within the digital version of Form IHT404. These tools help executors ensure that all calculations are accurate and flag any potential issues before submission.


  • Automated Features:

  • Real-time calculation of joint asset values.

  • Automatic error detection and prompts for corrections.

  • Verification of entered data against HMRC records.


8. Extended Submission Deadlines

In response to feedback from estate administrators, HMRC has extended the submission deadlines for Form IHT404 in certain circumstances. These extensions provide executors with additional time to gather necessary information and complete the form accurately.


  • Extended Deadlines:

  • Additional time for complex estates with numerous jointly owned assets.

  • Extensions available upon request for specific situations.


Implications of the Updates

The updates to Form IHT404 in 2024 reflect HMRC’s commitment to modernizing the inheritance tax reporting process. These changes have several important implications:


Reduced Administrative Burden

The enhancements to digital submission and the simplification of the form's layout reduce the administrative burden on executors. These changes make it easier to complete the form correctly and submit it efficiently, thereby saving time and resources.


Improved Accuracy

Updated valuation guidelines and automated calculations ensure that the information provided is accurate and up-to-date. This reduces the risk of errors that could lead to delays or additional tax liabilities.


Enhanced User Experience

The integration of Form IHT404 with other IHT forms and the provision of extensive online help resources significantly enhance the user experience. Executors and estate representatives can navigate the reporting process more smoothly and with greater confidence.


Greater Compliance

The clearer instructions and extended submission deadlines contribute to higher compliance rates. Executors are more likely to complete the form accurately and on time, reducing the likelihood of penalties for late or incorrect submissions.


Cost Savings

By simplifying the reporting process and reducing the need for professional assistance, these updates can lead to cost savings for estates. This is particularly beneficial for smaller estates with limited resources.


Key Takeaway

The latest updates to HMRC Form IHT404 in 2024 aim to streamline the reporting of jointly owned assets for inheritance tax purposes. With enhanced digital submission options, simplified instructions, updated valuation guidelines, and better integration with other IHT forms, the process has become more efficient and user-friendly. These changes reflect HMRC's ongoing efforts to modernize the inheritance tax system, making it more accessible and less burdensome for executors and estate representatives in the UK.



The Pros and Cons of Hiring an Inheritance Tax Accountant for Inheritance Tax Forms

Inheritance tax (IHT) can be a complex subject for many, often requiring individuals to navigate multiple forms, legal jargon, and intricate financial calculations. If you find yourself in the position of dealing with an estate, you might wonder whether hiring an inheritance tax accountant is a good idea. This topic can be quite polarizing, as there are both strong advantages and some drawbacks to consider.


The Complexity of Inheritance Tax

One of the main reasons people consider hiring a professional is the inherent complexity of the inheritance tax system. Forms like IHT400, IHT405, and IHT404 are just a few examples of the paperwork required. Each form has its own set of rules, eligibility criteria, and documentation. A slight mistake in any of these can lead to delays or even financial penalties. An experienced accountant can guide you through this maze with expertise, ensuring that all the required forms are filled out correctly and submitted on time.


Financial Optimization

Another compelling reason to hire an inheritance tax accountant is the potential for financial optimization. Tax professionals often know the ins and outs of tax allowances, exemptions, and reliefs that you might not be aware of. For instance, they can advise you on how to best utilize the "gift allowance" or the "spouse exemption" to minimize the tax liability. Over the long term, the money saved through these legal avenues can far outweigh the accountant's fees, making it a wise investment.


Time-Saving and Stress Reduction

Dealing with the loss of a loved one is emotionally taxing. The added stress of handling complex tax forms can be overwhelming for many. An inheritance tax accountant can take this burden off your shoulders, allowing you to focus on other important aspects of life. Not to mention, the time you would spend deciphering tax laws and filling out forms could be used more productively elsewhere.


Accuracy and Legal Compliance

Tax laws are subject to change, and keeping up with the latest amendments is not everyone's cup of tea. An accountant stays updated with these changes as part of their profession. They ensure that your submissions are in full compliance with the current laws, reducing the risk of legal complications down the road.


Cost Factor

While there are numerous advantages, one cannot ignore the cost of hiring a professional. Accountant fees can range from a few hundred to thousands of dollars, depending on the complexity of the estate. For those who are handling a relatively straightforward estate, the cost may not justify the benefits.


DIY Resources

With the rise of online resources, software, and guides, some people find it easier than ever to take a DIY approach to inheritance tax. These tools can help you fill out forms and offer basic advice. However, they lack the personalized touch and expert advice that a qualified accountant can provide.


Final Thoughts

In conclusion, the decision to hire an inheritance tax accountant should be made based on your specific needs, the complexity of the estate, and your comfort level with financial and legal documents. If your estate involves multiple types of assets, various forms, and potential for legal complexities, the expertise of an accountant is invaluable. On the other hand, if you're dealing with a simple estate and are comfortable navigating tax laws, you might decide to handle it yourself. Regardless, carefully weigh the pros and cons to make an informed decision that suits your situation best.



20 Most Important FAQs


Q: What is HMRC Form IHT404?

A: HMRC Form IHT404 is the Account of Jointly Owned Assets form used in the UK for inheritance tax purposes to report assets that the deceased owned jointly with another person.



Q: Who needs to complete Form IHT404?

A: The executor or administrator of the deceased's estate needs to complete Form IHT404 if the deceased owned any assets jointly with another person.


Q: What type of assets should be reported on Form IHT404?

A: Jointly owned assets such as real estate, bank accounts, investments, and other valuable items need to be reported on Form IHT404.


Q: Is Form IHT404 used alone?

A: No, Form IHT404 is used in conjunction with Form IHT400, the main inheritance tax return form.


Q: When should Form IHT404 be submitted?

A: Form IHT404 should be submitted along with Form IHT400 within one year of the date of death.


Q: What information is required about jointly owned property on Form IHT404?

A: Information required includes descriptions of the property, names of joint owners, their relationship to the deceased, and the value of the deceased’s share.


Q: How do you calculate the deceased’s share of jointly owned assets?

A: The deceased’s share is calculated based on their proportionate ownership and the total value of the asset at the date of death.


Q: What are the penalties for late submission of Form IHT404?

A: Penalties for late submission can include fines and interest charges on any unpaid inheritance tax.


Q: Can Form IHT404 be submitted online?

A: Yes, Form IHT404 can be submitted online through the HMRC portal.


Q: What are the recent updates to Form IHT404?

A: Recent updates include enhanced digital submission capabilities, simplified layout and instructions, and updated valuation guidelines.


Q: What exemptions and reliefs can be applied on Form IHT404?

A: Exemptions like spousal exemption and charitable donations, and reliefs for agricultural or business property, can be applied.


Q: How do you report joint bank accounts on Form IHT404?

A: Provide details of the bank account, names of joint owners, and the value of the deceased’s share at the date of death.


Q: What documentation is needed to support the information on Form IHT404?

A: Supporting documents include bank statements, property deeds, investment certificates, and any agreements related to joint ownership.


Q: How do you report liabilities related to jointly owned assets on Form IHT404?

A: Liabilities such as mortgages or loans on jointly owned assets should be detailed, including the outstanding amount and the deceased’s share.


Q: What happens if there are discrepancies between Form IHT404 and other forms?

A: Discrepancies can lead to delays and further inquiries by HMRC, so it’s important to ensure consistency and accuracy.


Q: Is professional advice recommended for completing Form IHT404?

A: Yes, due to the complexity of inheritance tax laws, seeking professional advice is often recommended.


Q: How do you handle assets that passed by survivorship on Form IHT404?

A: Indicate which assets passed by survivorship and provide the total value of the deceased’s share before deduction of liabilities.


Q: What should you do if you need to amend Form IHT404 after submission?

A: Contact HMRC as soon as possible to correct any errors or omissions on the submitted form.


Q: Are there specific instructions for valuing jointly owned real estate on Form IHT404?

A: Yes, the form provides guidelines for valuing jointly owned real estate, considering current market trends and valuations.


Q: How can online resources help in completing Form IHT404?

A: HMRC provides extensive online help, including step-by-step guides, FAQs, and video tutorials to assist in accurately completing Form IHT404.



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