In order to apply for a Grant of Probate, the Executors of an
estate must collect information regarding the deceased’s assets and liabilities
and complete an inheritance tax return. There are two different types of
inheritance tax return, the simple return (IHT205) which is provided
to the Probate Registry and the complex return (IHT400 and associated
schedules) which is reviewed by HMRC.
There have been calls to simplify the process and reduce the reporting requirements placed on Executors. Those calls have been answered and as of January 2022 the rules have changed.
For any deaths on or after 1st January 2022, the IHT 205 is no longer required, and most non-taxable estates won’t need to submit an Inheritance Tax return at all. Whilst Executors will still need to collate the same information about the estate, only a fragment of the information will instead be entered into the application to the Probate Registry.
The IHT 400 remains for complex estates however as the criteria for simple estates are to be extended, fewer estates will need to submit the IHT 400 return.
For any deaths prior to the 1st January 2022, the old rules and requirements in relation to an IHT 205 and IHT 400 will remain.
We are happy to assist executors with any part of the probate process and so if you would like to discuss the above or probate generally please do not hesitate to contact Jasmin Howlett on 01394 277941 or jasmin@fairstep.co.uk, alternatively fill out our contact form, and we would be happy to discuss your requirements in further detail.