Changes to IHT reporting requirements

Changes to inheritance tax (IHT) reporting for non-taxpaying estates came into effect on 1 January 2022.

The Inheritance Tax (Delivery of Accounts) (Excepted Estates) (Amendment) Regulations 2021 No. 1167 has effect for deaths occurring on and after that date.

The changes mean that most non-taxpaying estates will no longer have to complete IHT forms for deaths where confirmation is required. For deaths on or after 1 January, forms C5(SE)(2006) / C5(2006) do not require to be completed and where a claim to transfer unused nil rate band for excepted estates is to be made, form IHT217 is no longer required.

A new C1 form is available for deaths on or after 1 January and the necessary information can now be included on the revised C1 form. Commissary offices will not accept ‘old’ C1 forms for deaths on or after 1 January 2022.

More information on the changes is available in HMRC’s Trusts and Estates Newsletter and on the SCTS website.