IHTM08135 - Closing cases: clearance certificate (IHT30)

The closure letter ( IHTM08139) should provide sufficient assurance for the taxpayer that our enquiries are complete and there is no more tax to pay. However, a taxpayer can apply for a formal certificate that confirms that there is no further liability to Inheritance Tax. If a clearance certificate ( IHTM40000) is required the taxpayer will submit, or be asked to submit, form IHT30 ( IHTM40010).

Clearance cannot be given until the account has been balanced ( IHTM08134). When ready to issue the certificate

• you must check that the details on the form IHT30 – name of the deceased and date of death – correspond with the file cover and the account form
• if only 1 copy of the IHT30 has been submitted you must photocopy it
• on both copies of the IHT30 sign and print your own name, and write the date
• stamp the IHT30 with your official stamp
• send 1 copy of the IHT30 to the taxpayer, and retain 1 copy on the file
• on the File 4 ( IHTM08206) record, in red ink, “S239(2) cert. issued”, - initial and date the note (in Edinburgh only the File 1 is noted up ( IHTM08136))
• if we have already issued a closure letter, send the certificate under cover of SL124C.

If your estate includes settled property then please remember that you should not issue the certificate at any entry until all issues on both the free estate and settled property are final. The exceptions to this are

• where there are lifetime transfers over the threshold and all the tax has been paid on the lifetime transfer concerned
• where the settled property passes to charity, when the certificate can be issued without waiting for the rest of the estate to be settled
• (This text has been withheld because of exemptions in the Freedom of Information Act 2000)