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IHT413 – Business Relief, business and partnership interests and assets

The IHT413 form within the IHT400 form is used when the deceased owned shares in a company, a business or part of a business – or an asset used in a business and you’re deducting business relief.

Step-by-Step Guide to Completing the IHT413 Form

Step 1: Gather the necessary information

Before you begin to complete the IHT413 form, you will need to gather all the necessary information. This will include details about the deceased person’s assets and liabilities, including property, bank accounts, investments, and any other valuable possessions.

You will also need to gather information about any gifts that the deceased person made in the seven years before their death, as these may be subject to inheritance tax. You should also have access to the deceased person’s will, as this will provide important information about who should inherit their estate.

Step 2: Fill in the Personal Details section

The first section of the IHT413 form is the Personal Details section, which requires you to provide information about the deceased person, including their name, address, date of birth, and date of death.

You will also need to provide information about yourself, including your name and address, and your relationship to the deceased person. If you are the executor or administrator of the estate, you should also include details of the grant of representation.

Step 3: Complete the Statement of Assets and Liabilities

The next section of the IHT413 form is the Statement of Assets and Liabilities. This section requires you to provide details about the deceased person’s assets and liabilities.

You will need to provide information about any property that the deceased person owned, including the value of the property and any outstanding mortgages or loans secured against the property.

You will also need to provide details about any bank accounts, investments, and other valuable possessions, including their value and any outstanding debts or loans associated with them.

Step 4: Complete the Gifts section

The next section of the IHT413 form is the Gifts section. This section requires you to provide information about any gifts that the deceased person made in the seven years before their death.

You will need to provide details about the gifts, including the date of the gift, the value of the gift, and the identity of the recipient. If the gift was made to a trust, you will also need to provide details about the trust.

Step 5: Calculate the Inheritance Tax due

Once you have completed the Statement of Assets and Liabilities and the Gifts section, you will need to calculate the inheritance tax due.

To do this, you will need to subtract the total value of any liabilities from the total value of the deceased person’s estate. You will then need to apply any relevant exemptions or reliefs, such as the spouse or civil partner exemption or the nil-rate band.

Step 6: Complete the Declaration section

The final section of the IHT413 form is the Declaration section, which requires you to sign and date the form, confirming that the information provided is accurate and complete to the best of your knowledge.

You should also include any supporting documentation, such as copies of the deceased person’s will, valuations of their assets, and any other relevant information.

Step 7: Submit the form

Once you have completed the IHT413 form, you will need to submit it to HMRC, along with any supporting documentation. You should keep a copy of the form and all supporting documentation for your records.

HMRC will review the form and may request further information or clarification if necessary. Once they are satisfied that all the necessary information has been provided, they will issue a calculation of the inheritance tax due.

If you are unable to pay the inheritance tax in full, you may be able to arrange to pay in instalments. You should contact HMRC to discuss your options.

Completing an IHT413 form can be a complex and time-consuming process, but it is an important part of settling a deceased person’s estate and ensuring that any inheritance tax due is paid correctly. By following the step-by-step guide outlined in this article, you can ensure that you provide all the necessary information and complete the form accurately and efficiently.

It is important to seek professional advice if you are unsure about any aspect of completing the IHT413 form, particularly if the estate is complex or the value is high. We can provide guidance and support throughout the process and ensure that you comply with all the necessary legal requirements.

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.

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