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You'll need to complete form IHT100 Inheritance Tax Account if Inheritance Tax is due on assets transferred into or out of a trust. Completion is also required on a trust's ten-year anniversary if the value of the assets is above the Inheritance Tax threshold.
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You may need to fill in an IHT100 form if:
These are known as 'chargeable lifetime events'. A description of each event as well as exceptions to these rules can be found on pages 5 and 6 of form IHT110 'How to fill in form IHT100' - guidance notes for form IHT100. Follow the IHT100 link below to find this form.
Some trusts don't have to send in an IHT100 form for these events, as long as they meet the rules around excepted transfers and settlements - usually trusts with a low value. The rules are complicated but you can see them by using the 'Delivery of accounts' link below.
An IHT100 should be completed for each chargeable event. But, to reduce the amount of paperwork involved if the trust has made a lot of distributions, you can aggregate them into the quarters where they occurred and submit an IHT100 for each quarter. This means you would then only submit four IHT100s a year. Remember that to avoid late account penalties you need to ensure that the earliest chargeable event is reported within the allowable one year period.
In addition to the main IHT100 form, you'll need to fill in a separate 'event form' for every individual chargeable event you're reporting on. There are seven event forms:
You may also need to fill in supplementary (additional) pages for certain types of asset held in the trust, or if the person making a transfer into trust lives overseas.
You can download form IHT100, the event forms, supplementary pages, guidance notes and worksheets for helping you with the Inheritance Tax calculations.
The IHT100 return is split into nine parts:
You can either do this yourself at parts G and H of the IHT100 form, or you can ask HMRC to do this for you. If you want HMRC to do the calculation, leave parts G and H blank and go straight to part J.
If you choose to do the calculations yourself, you'll need to use form IHT100WS to help you.
Guidance for completing form IHT100WS can be found in form IHT113. When you're completing the IHT100WS you'll need to enter the number of quarters where tax is chargeable. To make sure that you enter the correct number of quarters you can use the calculator by following the link below.
Once you have your final figures, form IHT100WS will tell you how and where to copy them over to the main IHT100 form.
Inheritance Tax calculations can be complicated and you might want to get professional help with them. See the section below on getting help and advice.
All completed IHT100 Inheritance Tax Account forms should be sent to the HMRC Trusts & Estates Office in Nottingham.
Trustees have up to one year after a chargeable event to report it to HMRC using the IHT100 form.
However, tax might be due before this time, so it's advisable to act quickly after a chargeable event occurs.
The following table shows the deadlines for payment:
|Chargeable event occurs||Tax due|
|1 - 5 April||31 October|
|6 - 30 April||30 April (next year)|
|May - October||30 April (next year)|
|November||31 May (next year)|
|December||30 June (next year)|
The payment methods and penalties for non-payment are the same as for all Inheritance Tax payments. If this is the first time you have had to pay Inheritance Tax on the trust you must get an Inheritance Tax reference number before you pay any tax.
Understanding trusts can be difficult so you may want to work with a solicitor or tax adviser. Remember though that the trustee is still legally responsible for the trust's tax affairs. You'll find some links below to professional organisations - although not all professionals are registered with them.
If you want HMRC to communicate with your agent or professional representative on Income Tax and Capital Gains Tax matters, you'll need to fill in form 64-8. Follow the link below to find out more about completing form 64-8.If you want HMRC to communicate with your agent or professional representative on Inheritance Tax issues you'll need to enter their details on form IHT100.