IHTM13015 - Investigation of form IHT401: Compliance Group

England and Wales

Most of the files you receive containing form IHT401 will already have been examined by Technical Group, or the Risk Assessors and judged to be a complex case requiring enquiries on other aspects in addition to domicile.

Because of the complexity and the need to consider each individual’s domicile upon its own facts, formal referral of domicile to Technical Group is not considered appropriate. The subject is best dealt with by team-working the file with Technical Group. Accordingly, written referrals must not be made in the first instance.

When considering your initial Enquiry you must speak to someone in Technical Group. They will advise you what information to gather and the probability of a successful enquiry. The rest of the case must be examined in the usual way while the domicile enquiry takes place.

Unless it is clearly annotated on the IHT400 that the domicile has been accepted, you must assume that it has not been. A note from Pre-Grant that reads “BU after grant” is not an acceptance of the taxpayers claims. All such claims must be discussed with Technical Group.

Spouse or civil partner ( IHTM11032) relief is restricted to £55,000 where the transferor is UK domiciled but their surviving spouse or civil partner ( IHTM13031) was not domiciled in the UK. Where the domicile in question is that of the spouse or civil partner, then this too must be discussed with Technical Group.

This also applies where the question of domicile has arisen on submission of an IHT 100 account on a death or life-time transfer.

Where the deceased had assets in various parts of the UK the question of domicile will be considered by the office in that part of the UK in which the personal representatives first extract a grant of representation.

Scotland

In Scotland, a deceased’s foreign domicile will normally have been investigated and passed at the ‘special’ Inventory stage (S.8) before the file is passed to you for examination after Confirmation. If the question of a foreign domicile is raised at a later date you must refer the file to the Technical Group after you have obtained a full statement of the facts, using a IHT401 if necessary.

Northern Ireland

In Northern Ireland, we will normally have investigated the deceased’s foreign domicile prior to the grant. If for any reason that has not happened or the question of the deceased’s domicile is raised at a later stage, please make sure the taxpayer has completed a form IHT401 and a form IHT417 and ask the Risk and Research Liaison Team to search for information about the deceased. Then refer the case with these papers to the B2 or a C1, who will consult the Technical Group if necessary.