inheriting a property - IHT form asks if I intend to sell it within a year?

horshamdingle

OP, the question on IHT 405 is about the HMRC "fishing" for an indication that the IHT element relating to the property might be payable sooner rather than later.


On the Property % of the IHT due, the executor could pay (if enough cash) the whole balance by the end of the 6 month after the month of death - for a Jan 2016 death, the due by date is July 31st.


Alternatively, the IHT is payable over 10 annual payments, the first due by July 31st, then 9 annual payments each following year - the downside being that HMRC charge these delayed payments at 3% p.a.


The question has no impact on the IHT calculation.