Inheritance tax ( extra investments discovered)

kremmen

Hi.
I wonder if anyone knows how/when to notify tax dept of extra funds which may need to be added to estimates I made to obtain probate.

Depending on responses from investment companies the estimates of the value could change from £306K to anywhere between £326k to £340k.
Thanks

Paul

SeniorSam

The Executors need to contact the Probate court once they have all the details for a final accounting. However, do not be too concerned as values do differ and this is not unusual where an exact value cannot be obtained initially. It is important that the executors retain sufficient funds to meet any tax, as it is their responsibility to do so before full distribution to beneficiaries.

Sam

getmore4less

kremmen wrote: »

Hi.
I wonder if anyone knows how/when to notify tax dept of extra funds which may need to be added to estimates I made to obtain probate.

Depending on responses from investment companies the estimates of the value could change from £306K to anywhere between £326k to £340k.
Thanks

Paul

This is in the notes you must have read to complete the Probate and IHTXXX forms,

I don't remember exactly where though but IIRC it come under anything that changes the value of the estate, is tells you if, when and who you need to notify.


I found one place

http://www.hmrc.gov.uk/cto/forms/iht206-2006-1.pdf

page 32.


And if there is no tax to pay you may not have to notify.

kremmen

Thanks,

I have contacted tax dept who advised me to send a copy of my original form (IHT205) and a new form (C4) if the amount realised is over £325K.

Interestingly they say they haven't kept the original form as they only keep any they might want to check. I wonder if I should worry about this.

Paul

PS I will continue as I will be personally responsible if tax not paid

John_Pierpoint

I think we need a few more details of the estate as you appear to have got the probate by declaring that the estate is not liable to IHT and now you are suggesting that it may well be. This switches you into IHT400 territory and a much more stringent procedure, that normally requires a big chunk of tax to be agreed and paid BEFORE any approach can be made to the probate court.

Of course the addition (or loss) of value since the date of death of assets can be ignored (though there is a concession allowing you to substitute the current values if you have to sell at a loss).
Interest would be charged if there is tax to pay and you have failed to pay it within 6 months of the death, this might cause "muttering" amongst the beneficiaries.

How come you "overlooked" these assets?