At-Home Series - Electronic signatures of inheritance tax forms

In light of difficulties signing documents during the COVID-19 pandemic, there is now a process in place for the electronic signature of Forms IHT 100 (Inheritance Tax Account), IH T205 (The Return of Estate Information) and IHT 400 (Inheritance Tax Account)*.

Please note that this process can only be used where a professional, such as Wrigleys, is acting on your behalf.

HMRC can accept ‘typed’ electronic signatures so long as they are accompanied by the following confirmation:

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

•           Seen the Inheritance Tax account; and

•           Agree to be bound by the declaration on page [14 of the IHT400] or [8 of the IHT100 or IHT205].”

Wrigleys has now tried and tested this method and can guide you through the process.

* Form IHT 100 is to be used to report chargeable events to HMRC. These include the following:

• Gifts and other transfers of value including failed potentially exempt transfers.
• Ending of an interest in possession in settled property.
• Assets in a discretionary trust ceasing to be relevant property
• (proportionate charge), or a charge to tax arising on an age 18-25 trust.
• Discretionary trust 10-year anniversary (principal charge).
• Assets ceasing to be held on special trusts (flat rate charge).
• Cessation of conditional exemption and disposal of trees or underwood (recapture charge).
• Chargeable event in respect of an alternatively secured pension fund on death of scheme member, death of a dependant or relevant dependant, or relevant dependant ceasing to be a relevant dependant.

 Form IHT 205 is to be used where a person has died and that person was domiciled in the UK at the date of death and the gross value of

the estate for Inheritance Tax is less than or equal to:

•            the excepted estate limit

•            twice the excepted estate limit and form IHT217 ‘Claim to transfer unused nil rate band for excepted estates’ is attached

•            £1million and there is no Inheritance Tax to pay because of spouse, civil partner or charity exemption

Form IHT400 is to be used where the deceased died on or after 18 March 1986, and there’s Inheritance Tax to pay, or there’s no Inheritance Tax

to pay, but the estate does not qualify as an ‘excepted estate’. Please note that in some circumstances a ‘reduced IHT400’ can be filed.