IHT100 forms - take care with added property

Members who advise on Inheritance tax (IHT) and trusts will be aware that the suite of IHT100 forms were updated earlier this year. These forms are used to notify HMRC of a range of IHT events.

Last week, an ATT member spotted that the computations in form IHT100c and IHT100d are not working as expected where relief is claimed on additions to the trust after the trust has commenced/after the last 10 year anniversary. HMRC have acknowledged the issue and will publish revised IHT100c/d forms in due course. In the meantime, their processing teams have been made aware of the problem.

Any members who have clients affected by this may wish to help HMRC by flagging the issue in a cover note and supplying their own computations where they differ from HMRC’s.

Details of the issue

Form IHT100c is used to report exit charges when assets cease to be relevant property. The issue concerns boxes H18 and H19.

Form IHT100d is used to tell HMRC about assets in the trust on its 10 year anniversary. The issue concerns boxes H15 and H16.

The problem arises where relief is needed because there have been additions of relevant property to the trust since either the start of the trust, or the last 10 year anniversary. Relief is given based on the value of the added property and the number of complete quarters between the start of the trust/last 10 year anniversary and the addition of the property. The current forms are not computing enough relief and therefore will need to be revised. 

We don't yet have a date for when the forms will be updated so our standard advice to use the latest forms available online on GOV.UK will apply. 

We are grateful to HMRC for their very prompt acknowledgement of the issue. If you have any other comments or concerns about the updated IHT100 forms please let us know on [email protected].