IHT 403 - Gifts and expenditure table

Cookieman2

Hi,
My mother passed away recently and I'm working my way through the HMRC forms and have now reached the Gifts section of IHT403.
I've checked through posts and cannot find the exact answers to my queries so would appreciate some help. I can complete the income section fine . It is the expenditure section that is not so clear

1.  At the moment my household bills are basically the utilities  -gas/electricity/water, which makes 'other' quite large. But the Total expenditure is correct . Is this a problem? What are the guidelines for household bills? My approach maybe basic but saves time on trawling through countless bank statements
2. Nursing Fees - for the last 6 months my mother was in a care home, but for 18 months prior to that she had 3 care visits a day at home. Can the home care be entered in the 'Nursing Fees' section. It would be helpful as it would explain the big increase in outgoings
3. My mother's outgoings were higher than her income so there is an overall deficit. Her bank account was topped up when required by cashing in investments -always taking care to ensure that overall funds were adequate for future care. I cannot see anywhere to explain this. I don't see it as income 

Finally, what are people seeing as the turnaround time after sending in the IHT forms.

Thanks

Keep_pedalling

Duplicate thread.

sassyblue

2. I would say yes for the same reason you do.

3. I think for the purposes of that form the money cashed in from investments would be classed as an income and you can enter that in section 20, but put it in as 'other' if you don’t agree it’s income.

The reason for filling in that section is because you want to claim the gifts are exempt as 'gifts from income' question 6 on page 1, I don’t see how they would be exempt but obviously your circumstances are personal to you. 

Cookieman2

Keep_pedalling said:

Duplicate thread.

Hi. you've said duplicate thread. However I did say in my post that I couldn't find answers to my questions.

It would be helpful if you could point me to the thread that covers my queries

Keep_pedalling

https://forums.moneysavingexpert.com/discussion/6298569/iht-403-gifts-and-expenditure#latest

getmore4less

sassyblue said:

2. I would say yes for the same reason you do.

3. I think for the purposes of that form the money cashed in from investments would be classed as an income and you can enter that in section 20, but put it in as 'other' if you don’t agree it’s income.

The reason for filling in that section is because you want to claim the gifts are exempt as 'gifts from income' question 6 on page 1, I don’t see how they would be exempt but obviously your circumstances are personal to you. 

Converting assets to cash is not income.

Cookieman2

I've now got all my figures sorted and done some more checking online. I now know that I cannot claim the gifts are from income.
as there was not enough 'excess' income to cover the gifts. By topping up her bank account by cashing in on assets  she had enough money to make gifts but as far as HMRC are concerned the gifts are not covered by her normal income (pensions, interest etc)
Therefore, I don't fill in sections 20,21 and 22 -gifts made as part of normal expenditure out of income.
Instead I list gifts over the past seven years in section 7. If I had realised that earlier would only have needed to look through bank statements for the gifts and not go into the details of what required f0r 20-22.

Thanks for the advice