Inheritance tax bill ?

Wickers_2

Hello All,
We are in the process of dealing with my deceased uncles estate. The IHT400 and supplement forms and probate forms were sent weeks ago. We had a reply from the probate and went into the solicitors office last week to sign the oath (we have not paid our inheritance tax bill yet).

We also received a reply from HMRC with a reference number and their account details and how to pay. On the IHT400 we also specified that we would like to pay in ten instalments.

I can't help feeling a little stupid here but I am waiting for a letter from HMRC to actually send me a bill to tell me how much my first instalment payment will be ( I obviously know how much it is).

So, do I just assume the HMRC have accepted my figures given on the IHT400 and pay them 10% of the amount or do I have to wait for an actual bill ??

Thanks for any advice.

Yorkshireman99

Wickers wrote: »

Hello All,
We are in the process of dealing with my deceased uncles estate. The IHT400 and supplement forms and probate forms were sent weeks ago. We had a reply from the probate and went into the solicitors office last week to sign the oath (we have not paid our inheritance tax bill yet).

We also received a reply from HMRC with a reference number and their account details and how to pay. On the IHT400 we also specified that we would like to pay in ten instalments.

I can't help feeling a little stupid here but I am waiting for a letter from HMRC to actually send me a bill to tell me how much my first instalment payment will be ( I obviously know how much it is).

So, do I just assume the HMRC have accepted my figures given on the IHT400 and pay them 10% of the amount or do I have to wait for an actual bill ??

Thanks for any advice.

The only certain way is to actually ask HMR&C. They are such a law unto themselves.

Wickers_2

Thanks for the reply Yorkshireman99. Unfortunately it's my mum who is the named Executer (being next of kin) and HMRC will only speak with the named person. I am just helping my mum out as she's in her 80's and struggling with the detail (as well as me at the moment . I just thought, because of ticking the 'pay by instalments' box on IHT400 that they would have sent some payment schedule. As you say, they do as they please to keep us minions in our place .

Crabapple

They will expect you to pay what you calculate is due.

They will send you a calculation but that will be months away.

Send the money with an IHT421 then wait for them to stamp it and send it back so you can apply for probate.

Yorkshireman99

Get your mum to call them while you are there and get her to tell them you are authorised to talk to them. It worked for me. For future reference they will accept an agent dealing with her tax affairs. It does not have to be a professional so you can do it.

Wickers_2

Thanks Crabapple,

Just had a power cut so couldn't reply sooner. So I can send an amount that I have calculated to get the probate before they send their calculation?

Wickers_2

Yorkshireman99 wrote: »

Get your mum to call them while you are there and get her to tell them you are authorised to talk to them. It worked for me. For future reference they will accept an agent dealing with her tax affairs. It does not have to be a professional so you can do it.

Thanks again Yorkshireman99. I live 200 miles from my mum so yet another little hurdle to cross.I suppose my mum then would have to call HMRC and give her permission for me to deal with the inheritance tax without having to go through the power of attorney route then?

Yorkshireman99

Wickers wrote: »

Thanks again Yorkshireman99. I live 200 miles from my mum so yet another little hurdle to cross.I suppose my mum then would have to call HMRC and give her permission for me to deal with the inheritance tax without having to go through the power of attorney route then?

I can't be certain but is worth a try.

Crabapple

You will need to pay first else you'll never get the grant!

You said pay 10% but you can only take the instalment option on unsold houses. Any cash or other assets you need to send all the IHT on those assets now.

I think your mum could sign some sort of authority. There's a specific form for advisors, not sure if you can use it for a family member. Maybe as easy for her to write them a letter?

Wickers_2

Crabapple wrote: »

You will need to pay first else you'll never get the grant!

You said pay 10% but you can only take the instalment option on unsold houses. Any cash or other assets you need to send all the IHT on those assets now.

I think your mum could sign some sort of authority. There's a specific form for advisors, not sure if you can use it for a family member. Maybe as easy for her to write them a letter?

Thanks again Crabapple. We are in the process of selling the house. My uncle had savings of about £20K and the total inheritance tax bill will be about £31K so most of the bill will come from his savings (although we didn't send a form that allows direct payment from the deceased account). Once the house is sold we will settle the remainder of the IH bill from that and pay off the tax bill and not string out instalments over 10 years. We are trying to avoid any substantial bridging loans. I'll speak to my mum about writing a letter.