HMRC has replaced the forms used to report chargeable lifetime and trust transfers, along with updating the related guidance. The new system includes a set of combined Inheritance Tax (IHT) account and event forms tailored to specific chargeable occasions.
Following recommendations from the former Office of Tax Simplification, HMRC has streamlined the process. Now, only a specific IHT100 form is required depending on the chargeable event, along with relevant supplementary schedules D31 to D39.
The new forms to be used are:
- IHT100a for gifts and other transfers of value;
- IHT100b to report termination of a qualifying interest in possession during the beneficiary’s lifetime;
- IHT100b(death) for interest-in-possession assets held in trust at death;
- IHT100c for the relevant property trusts proportional (exit) charge and IHT100d for the relevant property trusts principal (ten-year) charge;
- IHT100e for charges on specialist trusts;
- IHT100f for heritage exempt property;
- and IHT100h for assets ceasing to be held in an age 18 to 25 trust.
Form IHT418 remains in use for assets held in trust. Executors or trustees must use it to notify HMRC when a qualifying interest in possession trust comes to an end due to the beneficiary’s death.
HMRC also reminds users to ensure that the trust is registered with the Trust Registration Service (TRS), if applicable. The trust’s unique identification number will need to be provided if it is subject to tax.
The new IHT100 forms became effective from 12th August 2024, but HMRC will continue accepting the old versions and schedules until 31st December 2024.
