C1 Confirmation Gifts

Ruggyguy

I’ve almost completed the C1 form, I couldn’t have done it without the great advice and tips I’ve found throughout the forum. My Mum gifted £12k between her 8 grandchildren last year. Where on the form should I declare this? Any help greatly appreciated. 

buddy9

Ruggyguy said:

I’ve almost completed the C1 form, I couldn’t have done it without the great advice and tips I’ve found throughout the forum. My Mum gifted £12k between her 8 grandchildren last year. Where on the form should I declare this? Any help greatly appreciated. 

I am assuming that this is an excepted estate and an IHT return is not required.

Only non-exempt gifts need to be considered. There is an annual allowance of £3,000 and if the allowance for the previous year was unused, then this can be carried over. If this is the case then there would be non-exempt gifts of £6,000.

When completing the C1, the £6,000 would be added into the calculation for determining gross value for IHT in box 23.

Ruggyguy

Thanks Buddy, it is an exempted estate, £180k. So I don’t need to mention gifts? I just add 6000 to the value of box 15 and put the total in 23?

buddy9

The C1 form is designed so that gifts are not specifically mentioned. Gifts are not part of the estate for confirmation but are taken into account in the IHT calculation. So do not add it to box 15.

The £6,000 is only used in the calculations for IHT purposes on page 5.

Ruggyguy

buddy9 said:

Ruggyguy said:

I’ve almost completed the C1 form, I couldn’t have done it without the great advice and tips I’ve found throughout the forum. My Mum gifted £12k between her 8 grandchildren last year. Where on the form should I declare this? Any help greatly appreciated. 

I am assuming that this is an excepted estate and an IHT return is not required.

Only non-exempt gifts need to be considered. There is an annual allowance of £3,000 and if the allowance for the previous year was unused, then this can be carried over. If this is the case then there would be non-exempt gifts of £6,000.

When completing the C1, the £6,000 would be added into the calculation for determining gross value for IHT in box 23.

Do I add 6k to box 11 value and put in 23? Funeral was prepaid so I have nothing in 12,13 or 14 meaning 11 and 15 are equal, does that mean 23,24 and 25 are all equal? Cheers

buddy9

Gifts are only used for the IHT calculations on page 5. So do not add to box 11.

In your case there are no liabilities therefore box 11 and box 15 have the same value i.e. the gross value equals the net value.

On that basis, the gross estate value for IHT box 23, and the net value for IHT in box 24 will also have the same values but will be £6k higher than the values in box 11 and box 15.

For example if the value in box 11 and in box 15 is £180,000 then the value in box 23 and box 24 will be £186,000.

Box 25 value depends on whether a surviving spouse or a charity inherits. If there is no IHT spouse or charity exemption, then box 25 will (in this case) have the same value as boxes 23 and 24.

Ruggyguy

buddy9 said:

Gifts are only used for the IHT calculations on page 5. So do not add to box 11.

In your case there are no liabilities therefore box 11 and box 15 have the same value i.e. the gross value equals the net value.

On that basis, the gross estate value for IHT box 23, and the net value for IHT in box 24 will also have the same values but will be £6k higher than the values in box 11 and box 15.

For example if the value in box 11 and in box 15 is £180,000 then the value in box 23 and box 24 will be £186,000.

Box 25 value depends on whether a surviving spouse or a charity inherits. If there is no IHT spouse or charity exemption, then box 25 will (in this case) have the same value as boxes 23 and 24.

Thank You @buddy9

Ruggyguy

buddy9 said:

Gifts are only used for the IHT calculations on page 5. So do not add to box 11.

In your case there are no liabilities therefore box 11 and box 15 have the same value i.e. the gross value equals the net value.

On that basis, the gross estate value for IHT box 23, and the net value for IHT in box 24 will also have the same values but will be £6k higher than the values in box 11 and box 15.

For example if the value in box 11 and in box 15 is £180,000 then the value in box 23 and box 24 will be £186,000.

Box 25 value depends on whether a surviving spouse or a charity inherits. If there is no IHT spouse or charity exemption, then box 25 will (in this case) have the same value as boxes 23 and 24.

Sorry to bother you again, other than the will, cover letter, C1 and death certificate, is there any other documents that need submitted, like bank statements?

buddy9

do not submit bank statements.

See guidance on SCTS website. https://www.scotcourts.gov.uk/taking-action/dealing-with-a-deceaseds-estate-in-scotland/large-estates/