A new Inheritance Tax return together with guidance notes were launched today by the Inland Revenue.
Inland Revenue Account, IHT200, has been extensively trialled with both practitioners and individual taxpayers. It is clearer and easier to understand than the seven forms it replaces and means quicker handling, fewer follow-up enquiries and so lower costs. The form is for use by applicants in England, Wales and Northern Ireland for estates which must be reported to the Capital Taxes Offices. The consultation process is continuing in Scotland where the arrangements differ.
1. The new Inland Revenue Account for estates comprises a basic eight page form plus supplementary pages which need be completed only if an aspect is relevant to a particular estate.
2. A step by step worksheet (IHT(WS)) has been developed alongside IHT200 to help applicants work out the inheritance tax (if any) that must be paid on delivery of the account.
3. Also published today are the comprehensive associated guidance notes:
booklet IHT210 – `How to fill in form IHT200′
individual guidance notes for each of the supplementary pages;
booklet IHT213 – `How to fill in form IHT(WS)’
booklet IHT215 – `Practitioners Guide’ which gathers all the guidance in a single volume.
4. The Capital Taxes Office (CTO) at Nottingham is today sending an initial supply of the new account forms (and associated guidance) to practitioners who have delivered an account to the Nottingham or Belfast offices during the latter few months of last year. Anyone who has not received their initial supply within the next two weeks can obtain forms from CTO at the Nottingham address given below, or on the Internet at www.inlandrevenue.gov.uk/cto.
5. For access to most types of assets in a deceased’s estate a grant of representation is needed and any tax due must be paid. To get a grant an Inland Revenue Account (IHT200) must be filled in unless the estate is an `excepted estate’ which broadly is one smaller than 200,000 pounds . (The existing procedures for excepted estates – which are fully explained in leaflet, IHT 12 available from CTO – are unaffected.)
6. CTO will continue to accept accounts submitted on the existing forms for estates in progress but practitioners should use the new account forms for all new cases from 2 May 2000. Where, exceptionally, an account is filed for a death before 18 March 1986, earlier versions of the account forms should continue to be used. These account forms can be obtained from CTO at Nottingham. Where a grant has already been given but needs to be amended, form A5C should continue to be used – it is not replaced by the new IHT200.
7. The new account form and guidance notes have been introduced as part of the CTO strategy to deliver high levels of customer service. Their introduction will be beneficial to taxpayers by helping them to comply with the law and at the same time speed up administration and reduce costs. This single form replaces (other than for Scotland) all the current forms of account – IHT200, IHT201, IHT202, IHT200(N), IHT201(N), IHT202(N) and IHT44. Other inheritance tax forms, such as IHT37, IHT40 and IHT26 are replaced by some of the following list of supplementary pages.
D1 The Will D10 Household and personal goods D2 Domicile outside the UK D11 Interest in another estate D3 Gifts and other transfers of D12 Land and buildings value D4 Joint and nominated assets D13 Agricultural relief D5 Assets held in trust D14 Businesses and business relief D6 Pensions D15 Foreign assets D7 Stocks and shares D16 Debts owed by the estate D8 Debts due to the estate D17 Additional information D9 Life insurance and annuities D18 Probate summary
8. It is intended to introduce the new forms in Scotland as soon as the consultation process on their different arrangements has been completed. 9. Copies of the new account forms and guidance notes, which are not available from local tax offices or tax enquiry centres, are obtainable from: Capital Taxes Office Ferrers House PO Box 38 Nottingham NG2 1BB DX 701201 NOTTINGHAM 4 Stationery Orderline 0845 2341000 Orderfax 0845 2341010 NOTES FOR EDITORS 1. Inheritance Tax will be paid by about 20,000 estates in 1999/00 contributing some 2 billion pounds to public finances.
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