Scottish inheritance tax forms revamped

More information from the latest edition of the HMRC trusts & states newsletter

New IHT forms for Scottish estates have been published

• C1 confirmation inventory;
• C2 inventory continued;
• C3(2006) – notes to help you fill in form C1 confirmation inventory;
• C5(2006) return of estate information;
• C5(OUK)(2006) return of estate information (where person was domiciled abroad and their UK assets are cash and/or quoted stocks and shares, with a value less than £150,000); and
• C5(SE)(2006) – information about small estates.

Telling HMRC about a trust

HMRC Trusts and Estates are receiving 41G forms on which the trust is not expected to receive income or make chargeable capital gains. This can lead to the unnecessary issue of the SA900 trust and estate tax return.

The Revenue should be informed about the creation of a trust only if it is expected to receive income or make chargeable capital gains from the sale of assets within the next tax year.

If an existing trust starts receiving income or making chargeable gains, the tax deparment should be notified by 5 October following the end of the tax year.

Forms R40 and R185

HMRC remind taxpayers that R40 claim forms should be sent to the individual’s tax office. If the taxpayer does not have a tax office, it should be posted to HMRC Leicester & Northants (Claims), Saxon House, 1 Causeway Lane, Leicester LE1 4AA

The R185 form series are used by trustees, executors or administrators to inform beneficiaries about amounts paid or entitlements to income from a trust or estate. The beneficiary should retain the form for reference when completing a tax return or claiming a repayment.

Issue: 4419 / Categories: News , Inheritance Tax , Trusts