Iht400 and 403 form

V2001

Hi I'm filling a form for a freind iht400. Box 30 asks did the deceased make any lifetime gifts on or after 18 March 1986, if yes fill form 403. Is it expected to list all lifetime gifts after 1986.

The deceased did make a lifetime gift but it was well over 7 years ago , 11 years to be exact. The lifetime gift was property. So does form iht 403 still need to be filled? 
Also there was no gift with reservation on the lifetime gift.

So do I tick yes or no on box 30 in iht400 for lifetime gifts after 1986?

Jeremy535897

Technically it appears that you do. As you say, the notes to Box 30 (see page 12 of  https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1033304/IHT400Notes-10-21v0.5online.pdf) say that you should detail any gifts since 17 March 1986 not covered by the specific exemptions listed in those notes.

This has at least two purposes:

• to test the validity of exemptions like the normal expenditure out of income exemption
• to obtain details of chargeable transfers in the 7 years preceding the earliest PET made in the 7 years before death (a failed PET), which can affect the tax due on that failed PET

When you look at IHT 403, it specifically asks for those earlier chargeable transfers in box 19. The trouble is that it asks about chargeable transfers in the period of 7 years before the earliest gift listed in box 7. Box 7 in your case will have no gifts in it. Also, I assume the gift 11 years earlier was a PET rather than a chargeable transfer, so would not appear in box 19 anyway. It seems to me that you have to answer yes in box 30 of IHT 400, but there is nothing to enter on IHT 403. A solicitor who is used to dealing with these forms would be best placed to advise on the question you ask.

[Deleted User]

V2001 said:

Hi I'm filling a form for a freind iht400. Box 30 asks did the deceased make any lifetime gifts on or after 18 March 1986, if yes fill form 403. Is it expected to list all lifetime gifts after 1986.

The deceased did make a lifetime gift but it was well over 7 years ago , 11 years to be exact. The lifetime gift was property. So does form iht 403 still need to be filled? 
Also there was no gift with reservation on the lifetime gift.

So do I tick yes or no on box 30 in iht400 for lifetime gifts after 1986?

Yes you do - but the 7 year aspect is taken care of on the iht 403 by answering ‘No’ to the first question. Bit nonsensical really but there you go!

iht400 notes: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1033304/IHT400Notes-10-21v0.5online.pdf

IHT403: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/917890/IHT403-05-20.pdf

V2001

Yea its silly. We saying yes to the question in iht 400 but then submitting a blank iht403 form. The gift of property was a pet and not a chargeable transfer and made over 11 yrs ago.