IHTM18044 - Investigating form IHT411 and IHT412: data capture (NIOP or IOP)

Include the total values of listed stocks and shares from the IHT411 (IHTM18011) as NIOP (IHTM30172) on Compass (IHTM31101). Unlisted shares shown on the IHT412 (IHTM18011) can be entered as NIOP or IOP (IHTM30191), depending on whether the taxpayer elects to pay by instalments.

The exceptional cases where listed shares can be accounted for as NIOP or IOP (depending on whether the taxpayer elects to pay by instalments) are where

• they are held as other business or partnership assets,
• (rarely) they gave the deceased control of the company, or
• the listed investments are held as part of the deceased’s Lloyds Underwriting interest (IHTM18112).

• In the case of Lloyds underwriting interests, it is important that you enter the value of the portfolio as an “interest in a business” and not as holdings of stocks or shares.
• You must enter any business relief (IHTM25131) on the underwriting interest on Compass using one of the classes of “Business Relief” and not one of the “Business Relief (Shares)” categories.
• It is not always clear to PC&S what assets are included in an underwriting interest, so remember to check the data capture when you first examine an estate that includes an underwriting interest.