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Where Taxpayers and Advisers Meet

12 week deadline from HMRC to look at IHT400 has passed

dominoman
Posts:60
Joined:Fri Jan 15, 2016 6:41 pm
12 week deadline from HMRC to look at IHT400 has passed

Postby dominoman » Wed Dec 02, 2020 10:13 am

We submitted our IHT400 form just over 3 months ago and received a letter back from HMRC stating "We will now look at your IHT400 in more detail. This will take us up to 12 weeks" ... "If you haven't heard from us by 1 December 2020, you can assume that we have no questions to ask about the information or values you’ve given on form IHT400. We may still ask about changes you tell us about at a later date".

That 1st December date has now passed and we have received no further letter from HMRC. Grant of Probate was issued several weeks ago. Are we now safe to distribute the majority of the estate to beneficiaries?

I know there is an option to get a clearance using IHT30 but we can't do that yet as there are some smaller additional items we still need to report (not large in tax terms so these will have minimal impact on distributing funds. We will just hold back some cash to cover those)

Thanks!

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: 12 week deadline from HMRC to look at IHT400 has passed

Postby AGoodman » Wed Dec 02, 2020 10:34 am

In theory, and probably in practice, yes.

But i have heard of cases where HMRC have ignored their own deadline and asked questions afterwards. I think it was resolved but just involved some correspondence.

Fundamentally, it probably takes a risk assessment. If there's nothing debatable in there (e.g. a claim for business property relief or valued a difficult-to-value asset) then you can go ahead.

dominoman
Posts:60
Joined:Fri Jan 15, 2016 6:41 pm

Re: 12 week deadline from HMRC to look at IHT400 has passed

Postby dominoman » Wed Dec 02, 2020 4:10 pm

Hmm. That's my concern. It's a complicated estate with pretty much every type of asset inc Business Property Relief, Replacement BPR, partnership interests, private companies etc.

If we distribute and then they challenge something we'd end up having no money to pay it and as executors we may be liable.

Lee Young
Posts:2707
Joined:Wed Aug 06, 2008 3:26 pm
Contact:

Re: 12 week deadline from HMRC to look at IHT400 has passed

Postby Lee Young » Wed Dec 09, 2020 1:24 pm

In your circumstances I woud seek specific clearance from HMRC
Lee Young
Solicitor, Chartered Tax Adviser and Trust and Estate Practitioner


Partner, Frettens LLP
lyoung@frettens.co.uk
01202 491701


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