HMRC Inheritance Tax: Customer Guide

This guide is designed to help our customers to obtain a grant of representation, complete an account of the deceased's estate, and pay any inheritance tax (IHT) which may be due.

It also gives advice about lifetime gifts and the taxation of discretionary trusts.

If you have a question which is not covered by this guide, please telephone the Probate and IHT Helpline for advice.

Finance Act 2006

The changes which were introduced in the Finance Act 2006 have significantly affected the way that inheritance tax is charged on trusts, lifetime gifts and some pensions.

You can access new and updated guidance on these topics using the following links:

• Accumulation and maintenance trusts
• Age 18 to 25 trusts
• Trusts for bereaved minors
• Gifts
• Relevant property trusts
• Alternatively secured pension funds

There are also new and updated definitions in the inheritance tax glossary.

Contents

• Is Inheritance Tax due?
• Is it an excepted estate?
• When can I deliver a reduced account?
• What are the responsibilities of the personal representatives?
• What is a grant of probate/confirmation and how do I get one?
• Tell me about gifts
• Tell me about joint property
• How do I value the assets of an estate?
• Tell me about settled property
• What is the threshold for an excepted estate?
• Tell me about the taxation of discretionary trusts
• Tell me about paying the inheritance tax
• Tell me about business relief and businesses
• Tell me about calculating the Inheritance Tax
• Will I have to pay any interest?
• Tell me about nil rate bands for Inheritance Tax, Capital Transfer Tax and Estate Duty
• Tell me about agricultural relief
• Tell me about woodlands relief
• Tell me about the interaction of business and agricultural relief and exemptions
• What happens if the deceased did not leave a will?
• Tell me about foreign aspects
• Can I alter an inheritance following a death?
• Tell me about inheritance tax and penalties
• Tell me about deductions for the deceased's liabilities
• Tell me about pensions