IHTM18041 - Investigating form IHT411 and IHT412: investigation issues

Your main job is to follow-up any notes or amendments that PC&S have advised (“green ink amendments”), given de minimis limits (IHTM18042), and to ensure that unlisted holdings (IHTM18131) or shares on an alternative market (IHTM18331) are referred to Shares and Asset Valuation (SAV) (IHTM18141) to agree a value or consider business relief (IHTM18203).

Other issues

• Where stockbroker schedules or professional valuations are attached, ensure that all of the assets listed on them are carried forward to the IHT411 or IHT412 and also on the IHT400 (IHTM10021).
• Watch out for any indications of unlisted holdings that may have been either omitted from the estate (IHTM04043), or the subject of chargeable lifetime transfers (IHTM04051) by the deceased

• A debt to or from an unlisted company may be such an indication.
• If the deceased was a company director, you might reasonably expect them to own shares in that company.
• Address any enquiries initially to the taxpayer, and check the position subsequently with SAV if necessary.

• When looking at the deceased’s shareholdings you may also notice that the portfolio is unusually large compared to the size of the estate. This might reflect the invested proceeds from the sale of realty or other assets.