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HMRC announce changes to Inheritance Tax processes during lockdown

HM Revenue and Customs (HMRC) have announced changes to the Inheritance Tax (IHT) process in the UK to ensure minimal delays to its service during the Coronavirus (COVID-19) lockdown.

Inheritance Tax UK Coronavirus

Emergency changes to UK IHT payments and returns processes

To ensure service continuity during the UK lockdown, HMRC have announced temporary changes to the Inheritance Tax (IHT) process:

  • Payments and repayments

HMRC will no longer be accepting cheques for IHT payments and will also not make repayments using payable orders or cheques.

Until the restrictions are lifted, those acting on behalf of the estate, personal representatives or trustees are advised to use the faster payments (FPI) system or telephone banking facilities, CHAPS or Bacs to HMRC’s account.

  • Signatures

Due to the current social distancing rules in the UK, HMRC is also relaxing its rules on the signing of documents. During the lockdown, HMRC will accept the agent acting on behalf of an estate to sign on behalf of the personal representative or trustees, so long as the named account remains the same.

If a change of account is needed all parties who originally signed the IHT 400 or IHT 100 forms must still sign the letter. However, HMRC will recognise printed signatures for these forms if a professional agent is acting on behalf of the estate and:

  • the names and other personal details of the legal personal representatives or trustees are shown on the declaration page
  • the account includes a clear statement from the agent to confirm that all the legal personal representatives or trustees have seen the account and have agreed to be bound by the declaration

HMRC has offered guidance on the wording needed to help ensure that all forms are accepted. They suggest the following structure:

“As the agent acting on their behalf, I confirm that all the people whose names appear on the declaration page of this Inheritance Tax Account have both:

  • seen the Inheritance Tax Account
  • agreed to be bound by the declaration on (page 14 of the IHT400) or (page 8 of the IHT100).”

See also

How to make or amend a will during the Coronavirus (COVID-19) lockdown

Making a will in Scotland during the Coronavirus (COVID-19) lockdown

Will enquiries in the UK have increased by 75 per cent

Find out more

Inheritance Tax (GOV.UK)

Inheritance Tax account (IHT100) (GOV.UK)

Inheritance Tax account (IHT400) (GOV.UK)

Guidance on social distancing for everyone in the UK (GOV.UK)

Image: Getty Images

Publication date: 17 April 2020