IHTM14021 - Investigating form IHT403: practice

The taxpayer is required to complete schedule IHT403 of form IHT400 ( IHTM10021) if the deceased transferred any assets after 18 March 1986. However, they do not need to complete the form if the only transfers were

• made to their spouse or civil partner ( IHTM11032),
• covered by small gift exemption ( IHTM14180)
• covered by annual exemptions ( IHTM14141), or
• gifts which they believe to be covered by the normal out of income exemption ( IHTM14231), providing the gifts do not exceed £3,000 each year.

You must examine Form IHT403 to check whether the values returned for the declared gifts are correct and exemptions are properly claimed.

Where the taxpayer states that gifts are covered by annual or small gifts exemptions but does not provide details of the gifts themselves, you can accept that the relief is allowable, unless you have reason or information to believe otherwise.