Inheritance tax update – HMRC issues new IHT100 forms

HMRC has introduced new IHT100 forms – a collection of forms used to notify HMRC about specific occasions when inheritance tax is due on a trust, known as chargeable events.

Forms IHT100, plus the relevant event forms and supplementary pages are used for reporting chargeable lifetime transfers, failed potentially exempt transfers, Trust ‘exit charges’, Trust ‘ten-year anniversary’ charges, and other events.

These new IHT100 forms replace the older versions which were outdated and not in line with the design of other HMRC forms. 

What has changed?

Previously there was a main IHT100 account, and then a separate ‘event’ form was used to report the relevant transfer. Supplementary ‘D’ forms were also used to provide details of the assets being reported.

The design of the new forms is more modern and inline with the IHT400, Estate Inheritance Tax form, although they still do not calculate the totals automatically which the estate form does. Despite this they do appear to be more user friendly and fit for purpose so a welcome improvement.

Key timelines

These new forms are already available to use on the HMRC website, with immediate effect.

The old forms are no longer available on HMRC’s website but can be submitted to HMRC until 31 December 2024. Individuals, personal representatives and Trustees will need to use the new forms to report any chargeable events which are not excepted transfers going forward.

In the April 2023 HMRC Trusts and Estates Newsletter, HMRC announced plans to review the excepted transfer rules, to reduce the number of returns being required when no tax is due together with updating the IHT100 forms. We hope that the issue of the new forms means that the updated excepted transfer rules will be forthcoming but have heard nothing further from HMRC on this matter as yet.

MHA can help

Our tax experts understand the challenges that businesses and individuals face to meet the evolving regulations from HMRC, and we can help guide you in navigating your compliance obligations.

Please contact our private client tax team for assistance in completing these new forms, or with guidance on any other IHT related issues.