IHT400 and IHT406

sunsetboulevard

Post deleted

getmore4less

I would have to double check but I think you ignore the tax status,

this form is for the capital value of assets at DOD
so you need to get the amount of interest due upto DOD any interest after that belongs to the adinistration period.

tax status for the year to DOD is done with the R27

getmore4less

Jo101 wrote: »

The letter I received from the bank was as follows:-

"The balance on the account at the date of death was £52,741.71 with accrued interest to that date of £182.07 gross, that is, without the deduction of tax."

how often is the interest paid?
if monthly that could be part of a month

this is the IHT406 data the ballance at DOD with the interest added.

Further down the letter it says:-

"Account number xxxxxxx was registered to receive gross interest. I confirm £1,238.67 (gross) interest was paid for the period 6 April 2012 to 5 September 2012."

THis will be needed for the R27

This account was a one year bond that had originally matured on 1 August 2012 but she then re-invested for a further year.

5 months £1238 is around £8.15 a day so 182 is around 22days when does interest get added?. if the rate change in aug it(182) could be the interest from the 1st aug to 5sept.

Have a look at the statements it moght be more obvious.

For the IHT it is the capital that is important for the IHT.

getmore4less

So on the inheritance tax forms would I just add the £182.07 to the £52,741.81 to get the final figure? Total £52,923.88?


Thats what I would do,

just remember when it is paid it belongs to pre DOD tax calculations and any further interest is post DOD(is should be taxed at source so keep an eye on that).