What is iht 421?

You must submit the form within 12 months of the person dying.

You’ll need to give accurate valuations when you complete the form.

You can get any property or land valued by an estate agent or chartered surveyor.

You can also get a professional valuation for anything worth over £1,500.

You can estimate the value of cheaper assets, such as ordinary household goods and personal items like furniture, electrical items, paintings or jewellery.

You need to download and complete form IHT400. Send it to the address on the form.

You can read guidance on how to complete form IHT400.

You can ask HMRC to work out how much Inheritance Tax is due if you’re filling in the form without the help of a probate professional, such as a solicitor. You can do this when you fill in the form.

Contact HMRC’s Inheritance Tax helpline for help with completing form IHT400.

You need to fill in a corrective account form and send it to HMRC if you need to make any changes to information you’ve already submitted.

You must pay Inheritance Tax by the end of the sixth month after the person died. For example, if the person died in January, you must pay Inheritance Tax by 31 July.

You can pay in yearly instalments on certain things that may take time to sell, such as a house.

You’ll need to get an Inheritance Tax reference number from HM Revenue and Customs (HMRC) at least 3 weeks before paying any tax.

Use this form if you're applying for a grant of representation in England, Wales or Northern Ireland to outline assets in the deceased's estate that will become the property of the executors or personal representatives to distribute among the beneficiaries. Fill in the form, print it off and send it to: Inheritance Tax.

Inheritance Tax (IHT) is a tax that is levied on the value of a person's estate after they pass away. The IHT421 form is used by the executor or personal representative of a deceased person's estate to provide a summary of the estate's assets and liabilities and to calculate any Inheritance Tax that may be owed.

When a person passes away, their estate – which includes all their assets and possessions – must be valued, and any debts or liabilities must be paid off before the remaining assets are distributed to their beneficiaries. In some cases, Inheritance Tax may be due on the estate, which can reduce the amount of money that is left to be distributed to beneficiaries.

The IHT421 form is used to provide HM Revenue and Customs (HMRC) with a summary of the estate's assets and liabilities, along with any details of any gifts or transfers that were made during the deceased person's lifetime. This information is used to calculate whether any Inheritance Tax is due, and if so, how much.

Use this form if you’re making a request to represent in England, Wales, or Northern Ireland to outline assets in the deceased’s property that will become the belongings of the executors or non-public representatives to distribute many of the beneficiaries.

The IHT421 form is typically completed by the executor or personal representative of the deceased person's estate. This person is responsible for administering the estate and ensuring that all debts and liabilities are paid off and that the remaining assets are distributed to the beneficiaries in accordance with the deceased person's will.

The IHT421 form is divided into several sections, each of which requires specific information to be provided. The first section asks for basic information about the deceased person, including their name, address, date of birth, and date of death. The second section asks for details of any grants of representation that have been obtained, as well as the value of the estate at the date of death.

The third section of the IHT421 form is where the executor or personal representative provides details of the deceased person's assets and liabilities. This includes any property that they owned, as well as any cash, investments, or other assets that they had. Liabilities such as mortgages, loans, and outstanding bills should also be listed here.

In addition to providing details of the estate's assets and liabilities, the IHT421 form also requires information about any gifts or transfers that the deceased person made during their lifetime. This includes gifts that were made within the seven years before their death, as well as any trusts or transfers of value that were made during their lifetime.

The final section of the IHT421 form is where the executor or personal representative calculates any Inheritance Tax that may be due on the estate. This involves deducting any exemptions and reliefs that may be available, such as the spouse exemption or business property relief, from the total value of the estate.

Completing the Inheritance Tax IHT421 Form for probate summary in the UK can be a complex and time-consuming process, but here are the general steps to follow:

Inheritance Tax

HMRC

BX9 1HT

United Kingdom

It is important to note that completing the IHT421 form can be a complex process, and it may be advisable to seek professional advice from a solicitor or tax specialist. Additionally, there are strict deadlines for submitting the form and paying any tax due, so it is important to ensure that you meet these deadlines to avoid penalties.

Once the IHT421 form has been completed, it must be submitted to HMRC along with any other necessary forms and documentation. HMRC will review the information provided and determine whether any Inheritance Tax is due on the estate.

If the total value of the estate exceeds the Inheritance Tax threshold – which is currently £325,000 – then Inheritance Tax will be due on the amount that exceeds this threshold. The current rate of Inheritance Tax is 40% on the value of the estate above the threshold.

happens, HMRC will provide a deadline within which to complete their detailed checks. The process will continue as follows in these situations:

It can take up to a further 12 weeks for HMRC to complete their detailed checks. This may involve:

You will be informed if any of these checks are to take place.

HMRC’s deadline for resolving their detailed checks will fall within this week. If they do not get in touch with questions within this time, it’s safe to assume they do not have any queries about the information provided in the IHT400.

If they have not already done so, HMRC will usually issue the IHT421 at this stage.

If HMRC have decided to conduct an in-depth compliance check earlier in the process, they will telephone to explain what is being checked. This should take place within 8 weeks of their letter informing us that the compliance check was going to take place. HMRC might also request more information to be sent to them and will provide a deadline for this. Anything agreed with HMRC in this regard will usually be confirmed by them in writing.

In the event that the VOA or SAV were asked to check valuations in the IHT400 – and they attribute a higher value to any of the assets in the estate – HMRC will provide new calculations by Week 20. HMRC do not normally get in contact with us about the valuations themselves, but they might do if an acceptable valuation cannot be negotiated between them and the relevant agencies.

At this stage, we have to inform HMRC about any changes to the values of assets in the estate. We must do this either when those values are final, or when 18 months have passed since the date of death (whichever is earlier).

Before this deadline, we only need to tell HMRC of changes to the value of assets if:

Probate is a general term which is normally used to describe the legal and financial processes involved in dealing with the property, money and possessions (ie the ‘estate’) of a person who has died.

There are three variants:

GRANT OF PROBATE

This is where the deceased left a Will, which named executors (ie individuals who they wish to administer their estate). Only the executor named in the deceased’s Will can apply for probate to administer their estate. Our recent blog explains what your responsibilities are and also whether you need to act.

LETTER OF ADMINISTRATION (WITH WILL ANNEXED)

This is where the deceased left a Will which either did not name executors or none of the executors are able to apply for probate.  There are specific rules about who can apply for the letters of administration in this situation. This is generally the person who is the main beneficiary of the Will and they are known as ‘administrators’ but have to some extent the same responsibilities as executors.

LETTERS OF ADMINISTRATION

This is where the deceased did not leave a Will. If someone dies without a Will, they are said to be intestate. The intestacy rules will say who can apply to administer the estate instead. There is a specific order of who can apply in such a situation; spouse, children, parents, siblings, aunts and uncles. Similar to above, the individual who takes out the letters of administration is known as the ‘administrator’.

How do I 'get' probate?

We have already blogged about what to do when someone dies in terms of the practical next steps to take, but what happens next? The process of applying for probate is relatively straightforward. The steps are:

1. INFORMATION GATHERING

The first stage in the process will be an information gathering exercise to identify and value all of the deceased’s assets and to report it to HM Revenue & Customs (HMRC).

This will involve identifying the deceased’s assets and debts and estimating the gross value of the estate. The estimate is based on date of death valuations.

2. COMPLETE THE INHERITANCE TAX (IHT) ACCOUNT

There are two main IHT documents that need to be completed:

i.  An IHT400. The IHT400 is a lengthy document (with schedules) which sets out the assets and liabilities. This will include things such as bank accounts, personal items, property held, and expenses such as funeral costs. The executors/administrators will need to sign the IHT400. In some circumstances, a shorter IHT form can be used which is an IHT205. If the deceased had their permanent home abroad, and their assets in the UK consisted of cash or quoted shares only, which was less than £150,000 (gross), form IHT207 can be used.

ii. An IHT421. This is a probate summary of the IHT400 and confirms to HMRC whether IHT is payable or not. HMRC will stamp the IHT421 and return it and either you or your solicitor should submit it to the Probate Registry.

3. PAY ANY IHT

IHT will need to be paid before the Grant/Letters of Administration will be issued and therefore before it has been possible to draw in all the assets of the estate.

There are various ways to pay the IHT due on an estate, including paying on account from your account, from the deceased’s account or paying in instalments. You should consider the best option depending on your circumstances and the assets.

It is important to ensure that IHT is paid no later than six months from the end of the month in which the deceased died. Interest will be charged on unpaid tax after that date.

4. APPLY FOR THE GRANT/LETTERS OF ADMINISTRATION

In order to apply for probate, the following documents need to be provided to the Probate Registry:

If the original Will cannot be located, an affidavit which sets out the circumstances in which the Will has been lost will need to be prepared and signed by the appropriate person.