The IHT407 is used in conjunction with form IHT400 that provides details about the deceased’s household and personal goods, such as jewellery, antiques, cars, as well as domestic items. If the deceased owned any household or personal goods jointly, you should include the value of these items on form IHT404 instead.
Who needs to complete the IHT407 form?
The IHT407 form needs to be completed by the executor or administrator of an estate where the deceased had an unused inheritance tax allowance. If the deceased did not have an unused allowance, the form does not need to be completed.
The executor or administrator of the estate is the person responsible for managing the deceased’s affairs after they have passed away. They are responsible for valuing the estate, paying any outstanding debts or bills, and distributing the remaining assets to the beneficiaries.
If the deceased had a will, they would have appointed an executor in the will. If there is no will, the court will appoint an administrator to manage the estate.
When should the IHT407 form be completed?
The IHT407 form should be completed as part of the probate process. Probate is the legal process of dealing with the estate of a deceased person. It involves obtaining a grant of probate, which is a legal document that gives the executor or administrator the authority to manage the deceased’s affairs.
The IHT407 form should be completed after the grant of probate has been obtained. The executor or administrator should complete the form as soon as possible, as it needs to be submitted to HM Revenue and Customs (HMRC) within two years of the end of the month in which the deceased passed away. If the form is submitted after this time, the transferable nil rate band may be lost.
How to complete the IHT407 form
The IHT407 form is a relatively simple form to complete. It requires the executor or administrator to provide details about the deceased, their estate, and their surviving spouse or civil partner. The following is a step-by-step guide to completing the IHT407 form:
Section 1 – Details of the Deceased
In this section, the executor or administrator should provide basic information about the deceased, including their name, date of birth, date of death, and their National Insurance number (if known).
Section 2 – Details of the Estate
In this section, the executor or administrator should provide details of the deceased’s estate, including the value of their assets and any debts or liabilities they had at the time of their death.
Section 3 – Details of the Surviving Spouse or Civil Partner
In this section, the executor or administrator should provide details of the surviving spouse or civil partner, including their name, date of birth, and National Insurance number (if known).
Section 4 – Declaration
In this section, the executor or administrator should declare that the information provided in the form is true and accurate to the best of their knowledge.
Signature
The form should be signed and dated by the executor or administrator.
Submitting the IHT407 form
Once the IHT407 form has been completed, it should be submitted to HM Revenue and Customs (HMRC) along with the other probate forms. The executor or administrator should also include a copy of the grant of probate and a copy of the deceased’s will (if they had one).
If the IHT407 form is submitted within two years of the end of the month in which the deceased passed away, and the surviving spouse or civil partner is eligible for the transferable nil rate band, the transferable allowance will be applied to their inheritance tax allowance.
If the IHT407 form is not submitted within the time limit, the transferable nil rate band may be lost, and the surviving spouse or civil partner may have to pay more inheritance tax than they would have otherwise.
What do I do next?
The IHT407 form is an important part of the probate process in the UK. It is used to claim the transferable nil rate band, which allows a surviving spouse or civil partner to increase their own inheritance tax allowance by the amount of their partner’s unused allowance.
The form is relatively simple to complete and should be submitted to HM Revenue and Customs (HMRC) within two years of the end of the month in which the deceased passed away. If the form is not submitted within this time, the transferable nil rate band may be lost.
If you are the executor or administrator of an estate, it is important to ensure that the IHT407 form is completed and submitted correctly to ensure that the surviving spouse or civil partner receives the full benefit of the transferable nil rate band.
Are you looking for help to complete the IHT400 form? Give DIY Probate a call on 0116 2795044, and we’ll be happy to help.