IHTM42011 - Relevant property
trusts: practice with IHT100
IHT100
Lifetime Transfer Teams in Nottingham deal with all settlement
charges. (
IHTM42070)
The teams also deal with chargeable lifetime transfers (
IHTM42251). If the settlor has died
then lifetime issues are handled by the death caseworker.
- Structure of the IHT100 is explained at
section 10 of this manual from
IHTM10650.
- General investigation issues are set out
from
IHTM10677.
Due dates
- Due date for payment of tax is explained
at
IHTM30154
- Due date for delivery of the form is one
year after the end of the month in which the chargeable event took
place. (
IHTM10803)
- Where an account is delivered late and
there is tax to pay, you must consider a penalty. Appropriate
amounts and procedures are explained from
IHTM36023.
Files
- Lifetime transfers:
Pink lifetime file. (
IHTM03101)
- Lifetime transfers, transferor
subsequently dies:
White death file. (Any existing lifetime file
should be amalgamated with the death file and
cancelled/converted.)
- TYA and proportionate charges:
Blue settlement file. (IHTM03151) To save costs, these events
are often dealt with at the existing lifetime or death file if the
event is non-taxpaying.
When appropriate, ask FACET to create or amend these files on
Entg15. (
IHTM03261)
Risk Assessment
All IHT100 accounts are considered initially by non-death Risk
Assessors. They will arrange for any relevant papers to be
obtained, and decide whether the case should be sent for enquiry in
CG, or provide a direction for the action to be taken by
PC&S.
Compliance investigation
Main investigation issues are
- Accumulated income and IHTA84/S66 (2)
relief (
IHTM42088)
- Unnatural growth of trust fund (how has
this occurred, have there been further additions)
- BR, AR and exemptions
- Gaps in the history of the settlement
(events not previously notified)
- Residential property (is it relevant
property, or does an interest in possession exist)
- Non-delivery of accounts
- Excluded property claims and unusual
deductions
- Activities reported from other HMRC
offices
