Solicitors overlooking new IHT400 procedure

Despite a change in procedure made in May 2017 re lodging IHT400 accounts, HMRC has advised that a large volume of original C1s and C4s are still being sent.

Intended to improve turnaround times with HMRC, the requirement to submit the principal C1 to HMRC for stamping and return was dispensed with. Instead, a copy of the C1 should be sent when submitting the IHT400. HMRC then sends back a certificate confirming that the inheritance tax has been paid and this certificate is submitted to the relevant sheriff court along with the principal C1.

HMRC stopped sending back original documents with effect from 1 November 2017. This means that any original C1s or C4s will be lost going forward. When sending forms to HMRC it is important that you only send copies of the C1 or C4 in order to avoid having to get the documents resigned by the executor.