Guidance

HMRC Trusts and Estates Newsletter: April 2022

Updated 26 March 2024

Welcome to the April 2022 edition of the HM Revenue and Customs (HMRC) Trusts and Estates Newsletter.

We do not have a mailing list for the newsletter.

Trust Registration Service Deadlines

The deadline for registering most trusts on the Trust Registration Service (TRS) is 1 September 2022.

Trusts that are not taxable

The deadline for registrations for non-taxable trusts in existence on 6 October 2020 is 1 September 2022, this also applies even if the trust has since been closed.

Non-taxable trusts created after 6 October 2020 must register within 90 days of being created or otherwise becoming registerable, or by 1 September 2022 (whichever is later).

Taxable trusts created on or after 6 April 2021

Taxable trusts must register within 90 days of the trust becoming liable for tax or by 1 September 2022 (whichever is later).

There are different registration deadlines for taxable trusts that were created before 6 April 2021, guidance for these types of trusts can be found at Trust and Estates: detailed information

More information on the trusts that need to register and the trusts that are excluded from the requirement to register can be found at Trusts and Estates: detailed information. Further detailed technical information can also be found in the Trust Registration Service Manual.

To register a trust as a trustee, go to the Register a trust as a trustee page on GOV.UK and click on the register now button.

To register a trust as an agent, go to the Register a trust as an agent page on GOV.UK and click on the register now button.

To update details of your trust, declare no changes, claim your trust if registered by your agent, or close a trust on the trust register, go to the Manage your trust’s details page on GOV.UK and click on the ‘Start now’ button.

Capital Gains Tax on UK Property Account

Guidance for the Capital Gains Tax on UK Property Account  

Detailed guidance on the Capital Gains Tax on UK Property Account to report and pay Capital Gains Tax due on disposals of UK Property was published on 17 December 2021 and updated on 16 January 2022 in Appendix 18 of the Capital Gains Tax Manual.

This guidance provides further information on accessing and submitting the Capital Gains Tax on UK Property Account, and the interaction between the Capital Gains Tax on UK Property Account and Self Assessment, for UK and non-UK residents, agents, personal representatives and trustees.

Self Assessment and Capital Gains Tax on UK Property Account

When a customer comes to make an Self Assessment return and realises they should have made a Capital Gains Tax on UK property return during the tax year (30/60 days from the date of completion), they should first submit a Capital Gains Tax on UK property return before submitting an Self Assessment return.

Addresses for administration of estates post

To prevent delays in post regarding tax on income and gains (other than the Capital Gains Tax on UK Property Account) during the post-death administration period reaching the appropriate teams, please use the correct postal addresses.

You should address items to ‘HMRC Administration of Estates’:

• BX9 1EL, United Kingdom — for complex estates correspondence including appeals and Trust and Estate returns SA900

• BX9 1AS, United Kingdom — for informal procedures notifications

You do not need to add a building name or town. Couriers should use a different address.

Do not use these addresses for Inheritance Tax correspondence.

What to do when someone dies step-by-step guide

The step-by-step GOV.UK guidance on What to do when someone dies has recently been updated.

Updates include a replacement section at ‘Step 6 Deal with the estate’ for Dealing with an estate of someone who’s died. This new section consolidates information for personal representatives managing the administration period.

There are also consequential changes to the ‘Self Assessment returns when someone dies’ guidance to reduce duplication.

These updates follow on from changes to the content at ‘Step 5 Apply for probate and check if you need to pay Inheritance tax’. The Probate and Inheritance Tax guidance pages were updated to reflect the reporting requirements process for deaths on or after 1 January 2022.

Inheritance Tax GOV.UK detailed guidance

In recent months, reviews of the Inheritance Tax detailed guidance pages GOV.UK have also led to the following pages being updated:

• Work out Inheritance Tax due on gifts
• Valuing Stocks and Shares for Inheritance Tax
• Transferring unused basic threshold for Inheritance Tax 

Inheritance Tax YouTube Series

A series of short Inheritance Tax themed videos have now been published on HMRC’s YouTube channel and cover the following topics:

What is Inheritance Tax?

Check if you need to apply for probate

How do I value the estate of someone who’s died?

How and when do I pay Inheritance Tax?

How will changes to Inheritance Tax affect me?

Improvements to our timeline for form IHT100s for Trust and Lifetime charges

In HMRC’s April 2018 Trusts and Estates Newsletter we told you about changes we were making to the way we handle form IHT400 to improve our processing and the length of time until you can expect to hear if we have any questions about your account. The introduction of that approach was welcomed by the Office of Tax Simplification in its first report on Inheritance Tax in November 2018 and they recommended that HMRC consider introducing a similar review period for form IHT100 for Trust and Lifetime Inheritance Tax charges.

What to expect from us

We will write to you and let you know we have received your form IHT100 and provide you with a date 12 weeks in the future by which you can expect to hear from us if we have any questions. If you do not hear from us by the date given, then you can assume that we do not have any questions.

This guidance applies to forms IHT100 received after 20 April 2022.

Changes to the process for clearance for Trust and Lifetime charges form IHT100s

In cases where we tell you we have opened a compliance check into a form IHT100, we will write to tell you when the compliance check is ended. In other cases, we will not issue a standard clearance letter. If you want to apply for clearance, you should use form IHT30 ‘Application for a clearance certificate’.

Where the form IHT100 relates to a transfer arising during the lifetime of the transferor we may not be able to issue a clearance certificate as a future event may change the tax due in respect of that transfer. More detail about how we deal with clearance certificates in different circumstances are set out in More detail about how we deal with clearance certificates in different circumstances are set out in chapter 40 of IHTM40000 - Procedures for dealing with an application for clearance: is a certificate appropriate.

How to avoid delays

We may not be able to deal with your form IHT100 if you have not given us all the information we need. You can avoid delays and questions from us by:

• making sure that you answer all relevant questions in the form IHT100
• taking care when you tell us which schedules are included and making sure they are completed and enclosed
• enclosing a copy of relevant documents if they are requested.

Use of form C4 corrective accounts

We have been receiving an increased number of C4 corrective account forms reporting a decrease in the value of listed stocks and shares, and land and buildings. Where this decrease is the result of a sale the C4 corrective account should not be used.

Form IHT35 should be used if you wish to claim relief on shares or securities that were part of the deceased’s estate and were sold at a loss within 12 months of the date of death (where the gross sale price of all shares sold is less than the value returned on the form IHT400).

Form IHT38 should be used if you wish to claim relief on land or buildings that were part of the deceased’s estate and were sold at a loss within 4 years of the date of death (where the gross sale price is less than the value returned on the form IHT400).

The C4 corrective account should only be used to report amendments to the value of assets and liabilities returned in the form IHT400 where it is discovered that the date of death value was incorrect and to report assets or liabilities not previously returned on the form IHT400.