Donation to charity / IHT408

completelybroke

Firstly, many thanks already for help given in this forum, it really is a great help, especially at this difficult time

I'm filling on IHT Form 208 as I had bagged 25 bags of clothes/decent kitchenware/crockery etc etc for the charity shop which helpfully came round to collect it. They gave me a receipt, simply saying 25 bags.

How do I value this for form IHT408? Do I just give a nominal value of say £10 per bag? (they were enormous bags!)

Also, although I have donated them yet I was going to call the furniture charity shop to collect the table/chairs. Can I put that on form IHT408 and say put £50 (to be collected)
Also, there's a couple of boxes of those decorative plates you put on the wall but having looked them up they are worthless for purposes of valuing for form iht 407 (household/personal goods) so I was going to take those to the charity shop also. Would say £20 per box be ok, again if I put to be taken to charity shop as I haven't got round to it yet.

The rest of the stuff I am piecemeal taking to the tip, such as broken tv

Thanks for any help
x

Keep_pedalling

Is the estate actually subject to IHT? If not I would not even bother with this form, just lump it in with all the other household stuff at a nominal value.

AnotherJoe

KP, I believe by definition you only use form 408 if IHT is going to be due.

OP unless you believe you could have sold those bags for £10 each profit (eg once you consider the costs of advertising and postage etc) I would put a much lower overall value otherwise you'll be paying tax on that £500.

The fact the charity is willing to sort through recycle dispose give away and then sell a few items doesn't mean that is what you could sell them for.

If you look on eBay for s/h tables and chairs you'll see they go for practically nothing, many many unsold items in that area. The charity may well donate them rather than sell them. £50 is most likely very high unless its a well known sought after make.

Again for your decorative plates, if they are worthless, then dont put any value for them.

Tom99

[FONT=Verdana, sans-serif]The amounts used on IHT408 should be exactly the same as you valued these items at for the purposes of Q4 of IHT407 'Other Household and Personal Items'.[/FONT]
[FONT=Verdana, sans-serif]You can't claim the items are worthless for the purposes of paying 40% tax (IHT407) but then claim tax relief at 40% on £100/£200 or whatever for the same items (IHT408).[/FONT]

completelybroke

Thanks.
I might just leave it i think.

nonameuser

As I understand it, under the IHT408 scheme executors are supposed to offer ALL chattels to a registered UK/EU charity if the taxable estate is not to incur an IHT charge on the deceased's household belongings. You cannot pick and chose which items are disposed of. However whichever charity I pick, I find they will not take everything. Far from it in fact: No electrical items, no soft furnishing, no wall furniture, no old books etc etc. They only want the cream. That's fine, I don't mind taking the rest to the dump or putting it in the bin but what would HMRC have to say? The charity is only going to sign a schedule for the items they take. Then there is the possibility that another charity might take some of the items the first charity wouldn't accept. Can I deal with more than one charity? The scheme is not clear and nor does the guvmint give sufficient guidance, hence I am coming to the gurus on MSE for advice! Thank you.