In this section:
- Introduction to Inheritance Tax and trusts
- Trusts that do and don't pay Inheritance Tax
- Inheritance Tax on transfers into trust
- Inheritance Tax due on trust ten-year anniversaries
- Inheritance Tax on assets transferred out of trust
- Inheritance Tax and trusts following a death
- Completing form IHT100 Inheritance Tax Account
Completing form IHT100 Inheritance Tax Account
You will need to complete form IHT100 Inheritance Tax Account if Inheritance Tax is due on assets passed into or out of a trust, or on the trust's ten-year anniversary if it's above the Inheritance Tax threshold.
On this page:
- When to use the IHT100 form for trusts
- Step one - make sure you've got the right pages
- Step two - complete the return
- Step three - calculate the tax
- Step four - submit the return
- Deadlines, penalties and payments
- Get professional help for your trust
You may need to fill in an IHT100 form if any of the following events occur in your trust:
- assets are transferred into a trust
- someone who transferred assets into a trust dies within seven years of making the transfer
- an 'interest in possession' - where a beneficiary can use or enjoy a trust asset as if it is theirs - comes to an end
- trustees dispose of or transfer assets out of the trust
- the trust reaches a ten-year anniversary and is liable for a ten-year anniversary charge
- a special trust, for example a charitable trust, ceases to be entitled to special tax treatment
These are known as 'chargeable lifetime events'. A full description of each event as well as special exceptions to these rules can be found at page 6 of the guidance notes for form IHT100.
Some trusts may fall within what are known as 'excepted estates' and will not need to send in an IHT100 Inheritance Tax Account. These are usually trusts with a low value.
In addition to the main IHT100 form, you will need to fill in a separate 'event form' for every individual chargeable event that you are reporting on. There are seven event forms:
- IHT100a - Gifts and other transfers of value
- IHT100b - Ending an interest in possession in settled property
- IHT100c - Assets in a relevant property trust ceasing to be relevant property
- IHT100d - Discretionary trust ten-year anniversary
- IHT100e - Assets ceasing to be held on special trusts
- IHT100f - Cessation of conditional exemption and disposal of trees and underwood
- IHT100g - Alternatively secured pension chargeable event
You may also need to fill in supplementary pages for certain types of asset held in the trust, or if the person making a transfer into trust lives overseas.
You can obtain these forms by ordering them through the Probate and Inheritance Tax helpline on Tel 0845 302 0900.
You can also download form IHT100, the event forms, supplementary pages, guidance notes and worksheets for helping you with the Inheritance Tax calculations.
You can read about relevant property and relevant property trusts in the guide below.
The IHT100 return is split into nine parts:
- Part A - looks at what kind of chargeable event you are reporting - it also prompts you to fill in an event form for each event that you report
- Part B - covers practical details about the trust - for example, information about the person who transferred assets into the trust and the tax reference of the trust
- Part C - covers contact details for the main trustee dealing with the trust's tax affairs, or the professional representative of the trust
- Parts D, E, F - cover information about the assets themselves and will prompt you to fill in the relevant asset-specific supplementary pages where necessary
- Parts G, H - cover the Inheritance Tax calculations, which you can choose to do yourself, or ask HM Revenue & Customs (HMRC) to do for you (see section below)
- Part J - covers contact details for whoever should receive payment in the event that too much Inheritance Tax is paid
- Part K - is where you sign and declare that, to the best of your knowledge, the information you have given is correct and complete
You can either do this yourself at parts G and H of the IHT100 form, or you can ask HMRC to do this for you. If you want HMRC to do the calculation, leave parts G and H blank and go straight to part J.
If you choose to do the calculations yourself, you will need to use form IHT100WS to help you. Guidance for completing form IHT100WS can be found in form IHT113. Once you have your final figures, form IHT100WS will instruct you how and where to copy them over to the main form IHT100.
Inheritance Tax calculations can be complicated and you may want to get professional help with them. See the section below on getting help and advice.
All completed IHT100 Inheritance Tax Account forms should be sent to the HMRC Inheritance Tax Office in Nottingham.
Trustees have up to one year following a chargeable event to report it to HMRC using the IHT100 form.
However, tax may be due before this time, so it is advisable to act quickly after a chargeable event occurs.
The following table shows the deadlines for payment:
|Chargeable event Tax due||Tax due|
|1 - 5 April||31 October|
|6 - 30 April||30 April (next year)|
|May - October||30 April (next year)|
|November||31 May (next year)|
|December||30 June (next year)|
The payment methods and penalties for non-payment are the same for all Inheritance Tax.
Understanding tax on trusts can be difficult. You might like to get professional advice from a tax adviser or solicitor to help you. However, if you do, remember that the trustees are still all legally responsible for ensuring that the trust's tax affairs are carried out satisfactorily. You'll find some links below to professional organisations - though not all professionals are registered with them.
In order for HMRC to be able to communicate with your agent or professional representative on trust Income Tax and Capital Gains Tax matters, you need to fill out form 64-8.
If you want HMRC to communicate with your agent or professional representative on Inheritance Tax issues that occur during the lifetime of your trust, you must enter the relevant contact details on form IHT100.