Probate: Dealing with Trust and AIM ISA that fall outside of IHT

MoneySavingMarkF

We are about to submit for probate, using a probate solicitor for this part and then doing the rest of the estate ourselves, but I'm trying to validate how we are dealing with two parts of the estate that fall outside of IHT, namely a Stellar AIM ISA Portfolio and secondly the Clerical Medical Trust Bond.  There is no doubt they are outside (solicitors confirmed), but it's how we report them, or not.  The answers may be different for the two items.

1) As they are outside IHT do they need to be mentioned in the IHT400 and associated forms at all or just ignore them?
2) How do I represent them in the Estate Account - should they be excluded and dealt with separately or include them but that would be inconsistent with the IHT400 when shared with HMRC?
Any similar experience or knowledge would be most appreciated.  Thanks

ivormonee

Good question. I'm guessing there are no clues in the IHT400 guidance notes. Will be interesting to see what responses you get from those that might know about this area.

underground99

ivormonee said:

Good question. I'm guessing there are no clues in the IHT400 guidance notes. Will be interesting to see what responses you get from those that might know about this area.

Generally AIM shares will not be treated as 'listed' if they only trade on AIM and not another recognised stock exchange, but that doesn't mean you can leave them out of the estate. For the AIM ISA portfolio, there are certainly 'clues' in the IHT400 guidance notes... It clearly tells you where to put such shares .


The IHT 400 has separate schedules for:

'Listed stocks and shares. Did the deceased own any listed stocks and shares or stocks and shares ISAs (excluding control holdings)? ; use schedule IHT 411. That schedule explicitly says "Do not include any shares or securities listed on the Alternative Investment Market (AIM) or traded on OFEX"

Then 
'Unlisted stocks and shares and control holdings. Did the deceased own any unlisted stocks and shares (including AIM and OFEX), or any control holdings of any listed shares?; use IHT412. "Fill in this form to tell us about any stocks and shares owned by the deceased that are: listed on the Alternative Investment Market (AIM) or traded on OFEX"

You need to say you have the portfolio of AIM shares and give their details, and then holding by holding you can say how long they've been held and whether you're claiming business relief on them.  You can't just say, these fall outside IHT so I will be quiet about them and not put them on the IHT400'. They *are* in the estate, but they can often benefit from a relief (which is presumably why the deceased signed up to a managed portfolio service to get a discretionary portfolio of AIM shares that would benefit).

ivormonee

That's a comprehensive description from underground99. Hopefully this will greatly assist MoneySavingMarkF with his tax return and estate information that he needs to prepare and submit.

May we also extend our warm welcome to him on his joining this forum yesterday and on his inaugural post?