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IHT administration changes during COVID-19 lockdown

HMRC will no longer accept payment by cheque for an IHT liability and IHT forms 100 and 400 can be submitted by the registered agent without an original signed declaration.

HMRC have updated their procedures in relation to the administration of IHT during the COVID-19 lockdown.

IHT payments and repayments

HMRC will no longer be accepting any payments of IHT by cheque. All payments will need to made either online, through telephone banking or via BACS. It is important to check whether there are any bank charges and the time it would take to reach HMRC, to ensure that it arrives on time.

Any repayments due from HMRC will only be paid to a designated bank account and details will need to be provided to HMRC. HMRC will accept a request from the agent acting on behalf the personal representatives or executors where it is paid into their account.

HMRC Forms IHT100 and IHT400

HMRC normally require the original signatures of all trustees or executors when submitting forms IHT100 and IHT400, but HMRC have now updated their guidance such that no signature is required on the forms. 

Where there is an appointed professional agent acting on behalf of the Trustees or legal personal representatives and their names and details are on the forms, the following statement will need to be provided by the agent:

“As the agent acting on their behalf, I confirm that all the people whose names appear on the declaration page of this Inheritance Tax Account have seen the Inheritance Tax Account and agreed to be bound by the declaration on page 8 of the IHT100 (page 14 of the IHT400).”

Where there is no appointed professional agent, the Trustee or legal personal representatives will need to make the following statement:

“As trustee acting in the matter (As legal personal representative acting for the estate for IHT 400), I confirm that all the people whose names appear on the declaration page of this Inheritance Tax Account are the trustees and have both seen the Inheritance Tax Account and agreed to be bound by the declaration on page 8 of the IHT100 (page 14 of the IHT 400).”

These statements can be made in the additional information box on the IHT400 form or on the correspondence when submitting the IHT100 by the agent or the additional information form D40.

For many years, professional agents have been permitted to submit a taxpayer’s personal tax return online without a signature provided they have received authority from the taxpayer to file the tax return on their behalf. It is welcome that HMRC have now adopted this where an appointed professional agent is acting on behalf of the Trustees or legal personal representatives. However, where there is no professional agent acting there is the danger that it may lead to fraudulent cases if no signature is required. 

Stamped Form IHT 142

HMRC will no longer be returning the stamped form IHT 142 for probate summary to agents and legal personal representatives. They will be sent directly by email by HMRC to HM Courts and Tribunals service and the agent and legal personal representatives will be notified of this.

These are welcome developments while many continue to work remotely from home and HMRC should consider whether these can be made permanent as we come out of lockdown.

About the author

Rakesh Dabasia

+44 (0)20 7710 3135
DabasiaR@buzzacott.co.uk
LinkedIn

HMRC have updated their procedures in relation to the administration of IHT during the COVID-19 lockdown.

IHT payments and repayments

HMRC will no longer be accepting any payments of IHT by cheque. All payments will need to made either online, through telephone banking or via BACS. It is important to check whether there are any bank charges and the time it would take to reach HMRC, to ensure that it arrives on time.

Any repayments due from HMRC will only be paid to a designated bank account and details will need to be provided to HMRC. HMRC will accept a request from the agent acting on behalf the personal representatives or executors where it is paid into their account.

HMRC Forms IHT100 and IHT400

HMRC normally require the original signatures of all trustees or executors when submitting forms IHT100 and IHT400, but HMRC have now updated their guidance such that no signature is required on the forms. 

Where there is an appointed professional agent acting on behalf of the Trustees or legal personal representatives and their names and details are on the forms, the following statement will need to be provided by the agent:

“As the agent acting on their behalf, I confirm that all the people whose names appear on the declaration page of this Inheritance Tax Account have seen the Inheritance Tax Account and agreed to be bound by the declaration on page 8 of the IHT100 (page 14 of the IHT400).”

Where there is no appointed professional agent, the Trustee or legal personal representatives will need to make the following statement:

“As trustee acting in the matter (As legal personal representative acting for the estate for IHT 400), I confirm that all the people whose names appear on the declaration page of this Inheritance Tax Account are the trustees and have both seen the Inheritance Tax Account and agreed to be bound by the declaration on page 8 of the IHT100 (page 14 of the IHT 400).”

These statements can be made in the additional information box on the IHT400 form or on the correspondence when submitting the IHT100 by the agent or the additional information form D40.

For many years, professional agents have been permitted to submit a taxpayer’s personal tax return online without a signature provided they have received authority from the taxpayer to file the tax return on their behalf. It is welcome that HMRC have now adopted this where an appointed professional agent is acting on behalf of the Trustees or legal personal representatives. However, where there is no professional agent acting there is the danger that it may lead to fraudulent cases if no signature is required. 

Stamped Form IHT 142

HMRC will no longer be returning the stamped form IHT 142 for probate summary to agents and legal personal representatives. They will be sent directly by email by HMRC to HM Courts and Tribunals service and the agent and legal personal representatives will be notified of this.

These are welcome developments while many continue to work remotely from home and HMRC should consider whether these can be made permanent as we come out of lockdown.

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