IHT Payment of IHT

Question 1

When is IHT for CLT due?

Answer 1

Primary Tax Payable:
- 6 months from end of month it was made
- 30th April AFTER tax year it was made

Additional on Death (if relevant)
- 6 months after end of month of death (by trustee)

Question 2

Who is liable to pay for IHT on CLT?

Answer 2

Generally transferor (25%)
- if doesn’t pay HMRC can pursue trustee

BUT
- may want trustee to pay (20%)

Question 3

When is IHT on PET due and who is liable?

Answer 3

• 6 months after end of month of death
• by recipient

If they don’t pay for 12 months
- PR is liable

Question 4

When is all IHT on Transfer of Death Due? Who is liable for each?

Answer 4

• 6 months after end of month of death

Freehold Estate
- PR Liable
- normally paid from residue (unless outside UK then from itself)

Property Held in Trust (for deceased)
- Trustees liable
- out of trust assets

Gifts with Reservation
- donee of gift liable
- if unpaid for 12 months PR liable

Property Not Passing under will (joint tenancy etc.)
- liability on PR
- paid from the beneficiary

Question 5

How can you pay IHT from instalments

Answer 5

Individual or PR can make claim to HMRC
- then paid in 10 equal annual amounts
- first due 6 months after end of month of death