Does an IHT 100 Form need to be sent to HMRC where no IHT is payable? The case I have is a Discretionary Trust which has just been created by the Settlor. The only asset in the Trust is her home worth £220,000. She hasn’t created any other Trusts.
Thanks.
I suspect they are fine as the 80% threshold applies:
Inheritance Tax (Delivery of Accounts) (Excepted Transfers and Excepted Terminations) Regulations 2008 (SI 2008/605)
Wave goodbye to the RNRB…
There are no iht problems and the rnrb is not required in this case
Thank you.
I have looked at the Inheritance Tax (Delivery of Accounts) (Excepted Transfers and Excepted Terminations) Regulations 2008 (SI 2008/605) but I can’t see any reference to a 80% threshold.
Regards,
Para 4(3)(a):
“the value transferred by the chargeable transfer, together with the values transferred by any previous chargeable transfers made by the transferor during the seven years preceding the transfer does not exceed 80% of the IHT threshold,…”
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Hi, sorry to jump on this thread. Is an IHT100 required on the termination of a discretionary trust worth £120k? Obviously it is below 80% but the trust initially consisted of a share of a property (which was sold last year and cash paid out to the beneficiaries). Do I need to do the IHT100 because of Para 4(2)(a)?
Where a qualifying residence is disposed of (sale or gift) wouldn’t RNRB still be available under the downsizing provisions?
Barry, yes. If a residence is owned and would meet the RNRB requirements, relief under the downsizing provisions is available if ownership of the residence ceases (gift or sale) assuming cessation occurs on or after 8 July 2015). It would be necessary that assets up to the value of the RNRB are “closely inherited”.
Malcolm Finney
NT11, yes, para 4(2)(a) appears not to be satisfied and hence IHT100 requires completion unless the circumstances in para 4(3) are satisfied.
Malcolm Finney
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