CLT - trustees decide to pay IHT instead of settlor (after IHT100a submitted)

Trusts Discussion
1

An IHT100a is submitted to HMRC, with the settlor paying the IHT (with grossing up). The settlor and trustees later agree that the trustees will pay the IHT, from the trust funds (with no grossing up). The IHT is not due until October.

We informed HMRC by letter and asked if they need (i) written confirmation from the settlor or trustees; (ii) a revised IHT100a; or (iii) a new IHT reference, instead of the the settlor one already issued. Their reply is that it is being “referred to technical”.

Long gone are the days when a call to the Capital Taxes Office would provide a quick helpful answer.

If anyone has experienced this situation and is able to answer the question before HMRC do, that would be much appreciated.

2

I have not amended a IHT100a but when we questioned with HMRC about an amendment to an estimated figure they stated they would accept either a fresh IHT100a showing the amendments, or a letter confirming the boxes to amend.

Personally I would send a fresh IHT100a and in a covering letter point out the boxes that have been amended.

3

Thanks Nick. After input from technical, HMRC accepted our letter and issued a revised computation, with the same IHT reference and without grossing up.

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