This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Inheritance Tax Manual

Pensions: examining the form IHT409: boxes 1 to 7

The deceased may have had a pension arrangement in payment where the payments were guaranteed for a certain length of time, usually an annuity payable for 5 or 10 years. If the guaranteed payments made after the death are paid to the estate or at the direction of the deceased then the open market value of those payments, at the date of death, is an asset of the estate. The Board’s Actuarial Officer is responsible for considering any value given and calculating the open market value.

If the continuing payments are made at the discretion of the pension or annuity provider, their value does not form part of the estate for Inheritance Tax purposes.

If the estate is spouse or civil partner exempt, you should accept the information given, even if no value has been provided in box 7. If the value of the pension is clearly just the pension payable in the month of death or the month after, this is a debt due to the estate and not a payment under a guarantee (IHTM17056).

In other cases you should check that boxes 2 to 7 have been completed and ask the taxpayer or agent for any missing information. If no value has been provided in box 7, you could ask the taxpayer or agent to look a HMRC website the annuity calculator provided on the . External customers can find the calculator at If the estate is or may become chargeable, refer the valuation of the continuing payments to the Board’s Actuarial Officer along with any guaranteed annuity calculations.