Inheritance Tax - Inland Revenue Valuation of Estate

[PauloMaldini]

1. How soon after death does Inheritance Tax become payable?

2. How do the Revenue value the estate? Does a detailed independent valuation of House and Contents need to be carried out ahead of (1)?

3. What (if anything) prevents small but expensive items e.g. jewelry being hidden from (2)

[diddy]

IHT is payable 6 months from the end of the month in which the death occured. When applying for Probabte the personal representative can complete a form to say the estate is "excepted" (ie well below the threshold - I think currently the level below which a return is not required is �240,000 - returns will be required if the estate is approaching the threshold). If there are foreign assets ot trust assets a return may be required even for lower value estates. The Inland Revenue will either accept this or still require a full return in some cases. Otherwise, he/she must complete an IHT200 with details of all valuations. The Revenue will examine the valuations and will require independent valuations where appropriate, obviously of major items such as land or property, but maybe also of antiques, jewellery, art etc.

 

There is nothing specifically to prevent the hiding of smaller items, apart from the fact thet the personal representative is legally responsible for making a full return and would be commiting fraud if he/she were aware of omissions!

[PauloMaldini]

thanks very much