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HMRC internal manual

Inheritance Tax Manual

Conditions to be satisfied before certifying the IHT 30: tax not paid at another title

Although the transferee (IHTM30244) is liable for the taxpayable on lifetime transfers (IHTM14000) made within 7 years of death, and on gifts with reservation (GWRs) (IHTM04071), the transferor’s personal representatives (IHTM05012) are also liable in certain circumstances, IHTA84/S99 (2). As with settled property (IHTM16000), the value of a lifetime transfer or GWR will often have to be finalised before you can regard the liability of the personal representatives as settled. Also, even though the value of the lifetime transfer or GWR may be finally settled, the tax may not have been paid (in full) by the transferee.

If you receive an application for a clearance certificate in respect of assets passing under the will or intestacy where the tax has not been paid in full by the transferee, you should not issue the form IHT30 even if your enquiries into the death estate are finalised.

You should tell the taxpayer that it is not possible to issue the certificate as the liability of the personal representatives for the tax payable in connection with the death has not yet been determined. Explain that the tax payable in respect of chargeable lifetime transfers or GWRs has not yet been paid (in full) by the transferee(s) and that, because of IHTA84/S199 (2), the personal representatives may be liable for this tax if it is not paid. Say that the certificate will be issued as soon as possible.

If the tax in respect of the chargeable transfers is being paid by the transferee by instalments you can issue a certificate to the personal representatives but you should tell them that they may still be liable for the tax in respect of the outstanding instalments.