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IHT414 – Farms, farmhouses and farmland | DIY Probate

This IHT414 form is used when deducting Agricultural Relief on form IHT400 from some or all of the land, property or shareholdings in farming companies, included in the deceased’s estate.

Inheritance Tax is a tax that is paid on the value of an individual’s estate after they have passed away. It is important to know how to complete the IHT414 form if you are responsible for administering an estate. The form is used to provide detailed information about the estate, including its assets, liabilities, and tax liability. In this article, we will discuss how to complete an IHT414 form, including the information that you will need to provide and the steps involved in the process.

Before starting to fill out the IHT414 form, it is important to understand what it is and why it is needed. The form is required by HM Revenue and Customs (HMRC) when an estate is being administered. It is used to calculate the amount of Inheritance Tax that is due on the estate, and it must be completed and submitted to HMRC within 12 months of the date of death. Failure to complete and submit the form on time can result in penalties and interest charges.

The first step in completing the IHT414 form is to gather all of the necessary information about the estate. This will include details about the deceased’s assets, liabilities, and any gifts that they made in the seven years prior to their death. The more detailed and accurate the information that you provide, the easier it will be for HMRC to calculate the correct amount of Inheritance Tax that is due.

Assets that need to be included on the IHT414 form include the value of the deceased’s property, any investments that they held, any savings or cash that they had, and any personal possessions that are worth over £6,000. You will also need to provide details about any joint assets that the deceased owned with another person.

Liabilities that need to be included on the IHT414 form include any outstanding debts that the deceased had at the time of their death, such as mortgages, loans, or credit card balances. You will also need to provide information about any funeral expenses that have been paid from the estate.

In addition to assets and liabilities, you will also need to provide details about any gifts that the deceased made in the seven years prior to their death. This is important because gifts made within this time period may be subject to Inheritance Tax. You will need to provide the value of the gift, the date that it was made, and the identity of the recipient.

Once you have gathered all of the necessary information, you can begin filling out the IHT414 form. The form is divided into several sections, each of which requires different information.

IHT414: Section 1

Section 1 of the form asks for basic information about the deceased, including their name, address, and date of birth. You will also need to provide the date of their death and the location where they died.

IHT414: Section 2

Section 2 of the form asks for information about the deceased’s marital status, including the name and address of their spouse or civil partner. If the deceased was not married or in a civil partnership, you will need to provide details about their children or other relatives.

IHT414: Section 3

Section 3 of the form asks for details about the deceased’s estate, including the value of their assets and liabilities. You will need to provide a breakdown of each asset and liability, including its value and any outstanding balances. If there are any joint assets, you will need to indicate the proportion of the asset that belongs to the deceased.

IHT414: Section 4

Section 4 of the form asks for information about any gifts that the deceased made in the seven years prior to their death. You will need to provide the value of the gift, the date that it was made, and the identity of the recipient.

IHT414: Section 5

Section 5 of the form asks for information about any exemptions or reliefs that may apply to the estate. For example, if the deceased’s estate includes a family home, there may be an exemption for Inheritance Tax known as the “residence nil-rate band.” You will need to provide details about any exemptions or reliefs that you believe may apply to the estate.

IHT414: Section 6

Section 6 of the form asks for information about the deceased’s will, including the name and address of the executor. You will also need to provide details about any trusts that the deceased created in their will.

IHT414: Section 7

Section 7 of the form asks for information about the executor’s expenses, including any legal or professional fees that have been incurred in administering the estate. You will need to provide a breakdown of each expense, including its value and the reason for the expense.

Once you have completed all of the sections of the form, you will need to sign and date it before submitting it to HMRC. It is important to ensure that all of the information that you have provided is accurate and complete, as any errors or omissions may result in delays or penalties.

In addition to completing the IHT414 form, you will also need to pay any Inheritance Tax that is due on the estate. The amount of tax that is due will depend on the value of the estate and any exemptions or reliefs that may apply. It is important to seek professional advice if you are unsure about the amount of tax that is due, as failure to pay the correct amount can result in penalties and interest charges.

In conclusion, completing an IHT414 form can be a complex and time-consuming process, but it is an essential part of administering an estate. By gathering all of the necessary information and providing accurate and complete details on the form, you can ensure that the correct amount of Inheritance Tax is calculated and paid on the estate. If you are unsure about any aspect of the process, it is important to seek professional advice.

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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