WHERE TO SEND IHT CORRECTIVE ACCOUNT

Having a probate may seem overwhelming, especially when trying to submit a corrective Inheritance Tax (IHT) account to His Majesty's Revenue and Customs (HMRC). But fear not, as this comprehensive guide will walk you through where to send your corrective IHT account smoothly.

Identifying the Correct HMRC Office

The first step is to determine the right HMRC office to send your corrective IHT account. Here's how to find it:

  • Deceased's Domicile: Locate the HMRC office responsible for the deceased's last permanent address in the UK.

  • Probate Registry: If a Grant of Probate has been issued, check the Probate Registry's stamp. This will indicate the correct HMRC office.

Required Documentation:
Before submitting your corrective IHT account, ensure you have the following documents:

  • Completed IHT400 form or IHT421 form, depending on the estate's value.

  • Supporting documentation, such as Grant of Probate, death certificate, and relevant receipts.

Types of IHT Corrective Accounts

There are two different types of corrective accounts you may need to submit:

1. Amendment Account:
Used to correct errors or omissions in the original IHT account.

2. Additional Account:
Submitted when you discover previously unreported assets or liabilities after filing the initial IHT account.

Submission Methods:

HMRC offers three convenient methods to submit your corrective IHT account:

  • Online: Use the HMRC's online portal if you're comfortable with digital submissions.

  • Post: Send your completed forms and supporting documents to the appropriate HMRC office.

  • In-Person: Visit the relevant HMRC office to submit your corrective IHT account directly.

Review and Processing

Once you've submitted your corrective IHT account, HMRC will review it and determine if any additional tax is due. If so, you'll receive a revised tax bill specifying the amount owed. Conversely, if an overpayment was made, HMRC will issue a refund.

Potential Penalties

Submitting a corrective IHT account can result in penalties if the errors or omissions on the original account were careless or deliberate. Hence, it's crucial to review your IHT account thoroughly before submitting it.

Conclusion

Filing a corrective IHT account may seem daunting, but it's a necessary step to ensure accuracy and compliance. By following the outlined steps and submitting the necessary documentation, you can navigate the process smoothly.

Frequently Asked Questions:

1. What happens if I don't submit a corrective IHT account?

Failing to submit a corrective IHT account may lead to penalties and interest charges on any additional tax due.

2. How long do I have to submit a corrective IHT account?

You have one year from the date of the Grant of Probate to submit a corrective IHT account.

3. Can I make corrections to my IHT account online?

Yes, you can make corrections to your IHT account online if you submitted it using the HMRC's online portal.

4. What supporting documents do I need to submit with my corrective IHT account?

Supporting documents may include the Grant of Probate, death certificate, and receipts for funeral expenses and debts paid.

5. How will I know if I owe additional tax or will receive a refund?

HMRC will review your corrective IHT account and send you a revised tax bill or a refund, if applicable.

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