Changes to excepted estates rules

Trusts Discussion
1

Apologies if this is a bit of a Noddy question, but are we expecting an updated IHT205 form to reflect the changes to the excepted estates rules for deaths from 1 January 2022, or are we to rely instead on the online checker tool on the gov.uk website for reporting the values of relevant estates? (How to value an estate for Inheritance Tax and report its value: Estimate the estate’s value - GOV.UK)

I have seen reference in various places, including on Emily Deane’s contribution on 4 January to the STEP blog, to the use of the IHT205 form being extended to more non-taxable estates which would previously have had to submit a full IHT400, but can’t find an IHT205 form reflecting the more generous limits.

If there is already a new IHT205 form for deaths which have occurred since the new year, I would be most grateful if anyone can tell me where to find it! Considering how little effort it takes to get a case stopped at the Probate Registry, I have no desire to get caught out sending the wrong form…

Thanks

Alison Elwess

2

Forgive me if I’ve got this wrong but my initial understanding of the changes is that IHT 205 is no longer to be used for deaths commencing first of January 2022 and instead the total gross and net values of the estate that qualifies will just appear in the legal statement which I presume may be altered to some extent. I think we have to wait for Full guidance from HMRC/HMCTS.

Patrick Moroney

3

The IHT205 (and IHT217) is no longer required for deaths on or after 1st Jan 2022. The required IHT info is now captured in the new updated PA1P or PA1A or online via MyHMCTS.

4

Thank you both, that was my original understanding of the position, but I was beginning to wonder what I had missed, having seen various (apparently reliable) sources referring to the IHT205 now being available to more estates following the changes.

Alison

5

On 1 January 2022, the Inheritance Tax Excepted Estates Regulations 2020 comes into force.

Until 12th January 2022, MyHMCTS are only accepting applications for deaths that occurred:

  • before 1 January 2022
  • on and after 1 January 2022 and where you’ve submitted either an IHT 400 & 421 or IHT 207

For deaths on and after 1 January 2022 affected by the legislation, you’ll be able to submit applications on 12 January 2022 after a system upgrade.

This is what they have on the Portal notice board. I am assuming the new forms will be introduced after 12/01/2022