Is an IHT 100 required?

Trusts Discussion
1

I have been asked to deal with the termination of a 2004 Discretionary Trust. Nothing has been done to register the Trust etc.

The value of the Trust asset in 2014 is just below the NRB.

The value of the Trust is now well above the NRB.

My understanding is that because the value at the principal charge was below the NRB the tax rate is 0% and there is now no IHT exit charge to pay. Notwithstanding this, do forum members agree that the Trustees should still complete an IHT 100?

Thanks

2

I believe it is:

Inheritance Tax (Delivery of Accounts) (Excepted Settlements) Regulations 2008 (SI 2008/606)

Para 4(7) is the relevant exception but I suspect it does not apply here.

3

I agree with Andrew as the chargeable value will not be less than 80% of the NRB. Note also that there are other conditions to be met in Reg 4(2) or (3)(a)-(c).

Have accounts not been delivered previously when they were required e.g. in 2014? Reg 4(4) has an 80% limit and note that if it was the first 10 year anniversary the chargeable value is calculated without deductions and reliefs under Reg4(5).

Accounts can be filed late without penalty if no tax was chargeable: s245(5) IHTA

Jack Harper

4

Thanks both for your responses