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Where Taxpayers and Advisers Meet

Iht 403 advice

Bill31
Posts:49
Joined:Sun Jan 19, 2020 12:32 am
Iht 403 advice

Postby Bill31 » Mon Jan 03, 2022 12:53 am

I'm filling a form for a freind iht400. Box 30 asks did the deceased make any lifetime gifts on or after 18 March 1986, if yes fill form 403.

The deceased did make a lifetime gift but it was well over 7 years ago , 11 years to be exact. The lifetime gift was property. So does form iht 403 still need to be completed to show that this gift was made as it was done after 1986? There is no gwr.

maths
Posts:8430
Joined:Wed Aug 06, 2008 3:25 pm

Re: Iht 403 advice

Postby maths » Mon Jan 03, 2022 6:45 pm

Yes.

Bill31
Posts:49
Joined:Sun Jan 19, 2020 12:32 am

Re: Iht 403 advice

Postby Bill31 » Mon Jan 03, 2022 8:03 pm

Form 403 just mentions gifts made in last 7 years or anything that's a gwr. That's why we getting confused. It seems that form 403 would be blank?

When you look at IHT 403, it specifically asks for those earlier chargeable transfers in box 19. The trouble is that it asks about chargeable transfers in the period of 7 years before the earliest gift listed in box 7. Box 7 in will have no gifts in it. Also, the gift 11 years earlier was a PET rather than a chargeable transfer, so would not appear in box 19 anyway. It seems to me that if i answer yes in box 30 of IHT 400, but then there is nothing to enter on IHT 403?

maths
Posts:8430
Joined:Wed Aug 06, 2008 3:25 pm

Re: Iht 403 advice

Postby maths » Mon Jan 03, 2022 9:30 pm

IHT 400 box 40 "30 Gifts and other transfers of value: Did the deceased make any lifetime gifts or other transfers of value on or after 18 March 1986? See IHT400, ‘Notes’

Presumably the answer is "Yes" as "gifts" were made on or after 18.3.86; whether PETs or CLTs is irrelevant.

Therefore IHT403 needs completing primarily boxes 8 to 12 even if no gifts were made within 7 years of death.

HMRC are interested to identify whether (not in your opinion) a post 17.3.86 lifetime gift was made which under the IHT legislation was a GWR.


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