Dealing With HMRC: Inheritance Accounts

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

When must a Probate Registry (PR) file an inheritance account with HMRC?

As soon as possible after the decedent's death.
Within 12 months of the decedent's death, unless the estate is an exception. (correct)
Within 6 months of the decedent's death.
Within 6 months of the decedent's death, unless the estate is an exception.

What is the main reason for a PR to file an inheritance account with HMRC sooner rather than later?

To avoid accruing interest on unpaid taxes. (correct)
To avoid potential penalties from HMRC for late filing.
To avoid potential disputes between the beneficiaries of the estate.
To ensure that the estate's beneficiaries receive their inheritance as soon as possible.

What is the treatment of co-owned land in an inheritance account?

The value of the land is always discounted by 50%, regardless of co-ownership.
The value of the land is fully included in the deceased's estate, regardless of co-ownership.
The value of the land is discounted to reflect the difficulty in selling co-owned land, except when the co-owner is a spouse. (correct)
The value of the land is only included if the deceased was the sole owner.

What action can an interested party take if a grant of probate has been refused to a person with a prior right?

Apply to the court for an order to pass them over for probate. (B) Signup and view all the answers

What does the reference to "256 HMRC" most likely indicate?

A specific HMRC code or document reference. (C) Signup and view all the answers

Which of the following is NOT mentioned in the document regarding inheritance accounts and HMRC?

The requirement for a PR to be a lawyer or accountant. (C) Signup and view all the answers

Under what circumstances would a non-UK domiciled deceased's estate be exempt from Inheritance Tax?

When their UK estate consists solely of cash and/or quoted shares totalling less than £150,000. (D) Signup and view all the answers

What is the current Inheritance Tax (IHT) nil rate band?

£325,000 (B) Signup and view all the answers

Which of the following is NOT a criterion for an estate to be deemed 'exempt' and thus not require a formal account for Inheritance Tax?

The estate's value exceeds the IHT nil rate band but is less than £1 million. (D) Signup and view all the answers

A non-UK domiciled deceased's estate consisting solely of £100,000 in cash and £50,000 in shares would be:

Exempt from Inheritance Tax, as it falls below the £150,000 threshold. (C) Signup and view all the answers

What does 'net chargeable estate' refer to?

The value of the estate after deducting liabilities and any spouse or charity exemption. (B) Signup and view all the answers

In the context of UK domicile and Inheritance Tax, who would be considered a 'UK domiciliary'?

An individual who has a permanent home and residence in the UK. (C) Signup and view all the answers

Flashcards

Inheritance Account Filing Deadline

The Probate Registry (PR) must submit an inheritance account to HMRC within 12 months of the deceased's death, unless specific exceptions apply.

Co-owned Land Value Discount

A discount on the value of co-owned land is applied to the deceased's estate, accounting for the difficulty in selling it. However, no discount applies if the land is jointly owned by a spouse.

Citation to Refuse Probate

The Probate Registry can issue a citation to prevent a person with a prior claim from obtaining a grant if they haven't applied and don't intend to.

Application for Probate After Refusal

If a grant of probate is refused, an interested party can apply to the court for an order to be granted probate.