Pensions: examining form IHT409: initial examination
The taxpayer or agent must fill in form IHT409 if the deceased either received or had made provision for a pension, other than the State pension. This could be either from an employer or under a personal pension policy. The form should be completed whether or not any scheme payments are liable to Inheritance Tax. Most deceased people with a chargeable estate will have made some private pension provision. So it would be unusual not to see an IHT409 completed for a chargeable estate. The taxpayer or agent should complete a separate IHT409 for each arrangement.
The form asks for information on 4 areas:
- Boxes 1 to 7 - payments made under a pension arrangement that continue after a death (IHTM17012).
- Boxes 8 to 16 - payments of lump sum death benefits (IHTM17013)
- Boxes 17 to 24 - changes, transfers, disposals and contributions made within 2 years of death (IHTM17014)
- Boxes 25 to 42 - alternatively secured pensions and corresponding dependants pensions (these are only relevant for deaths between 6 April 2006 and 5 April 2011) (IHTM17015)