{"id":648,"date":"2022-02-15T13:04:00","date_gmt":"2022-02-15T13:04:00","guid":{"rendered":"https:\/\/ctt-group.co.uk\/tax-trust\/?p=648"},"modified":"2022-08-08T10:36:32","modified_gmt":"2022-08-08T09:36:32","slug":"uk-inheritance-tax-regulations-amended-to-exempt-many-more-estates","status":"publish","type":"post","link":"https:\/\/ctt-group.co.uk\/tax-trust\/uk-inheritance-tax-regulations-amended-to-exempt-many-more-estates\/","title":{"rendered":"UK Inheritance Tax regulations amended to \u201cexempt\u201d many more estates."},"content":{"rendered":"
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Significant amendments to the Inheritance Tax (Delivery of Accounts) (Excepted Estates) (Amendment) Regulations 2021 came into force this month. Aimed at removing the administrative burden by \u201cexempting\u201d more estates from the need to submit detailed estate returns as a condition of obtaining probate.<\/p>\n

These amendments apply to deaths occurring in the United Kingdom from 1st January 2022. This means that clients will no longer be required to report the value of an excepted estate if they\u2019re not applying for probate. However, for an estate to be excepted they must meet certain criteria.<\/p>\n

The 2004 regulations provide for three broad categories of excepted estate.<\/h4>\n

1) Small estates<\/strong> \u2013 where the estate\u2019s gross value for IHT purposes does NOT exceed the threshold. Eligibility is conditional on, amongst other things:<\/p>\n

(i) That the estate for IHT purposes included no more than \u00a3150,000 of trust property;<\/p>\n

(ii) In the seven years before death. The deceased did NOT make chargeable transfers other than certain specified transfers not exceeding \u00a3150,000 before deduction of agricultural or business property relief.<\/p>\n

2) Exempt estates<\/strong> \u2013 Where the gross value EXCEEDS the IHT threshold. The net value after liabilities and spouse or charity exemptions DOES NOT exceed the IHT threshold:<\/p>\n

(i) Eligibility is conditional on, but not limited to, the estate’s gross value NOT exceeding \u00a31 million. The estate for IHT purposes included no more than \u00a3150,000 of trust property but ignored property that passes on death to a spouse or charity.<\/p>\n

(ii) In the seven years before death, the deceased did not make chargeable transfers other than certain specified transfers not exceeding \u00a3150,000 before deduction of agricultural or business property relief.<\/p>\n

3) Foreign person estates \u2013<\/strong> those where the deceased was never domiciled in the United Kingdom and the UK estate comprises only cash or quoted shares or other securities. Eligibility is conditional on certain supplementary conditions being met.<\/p>\n

Changes to the rules involve:<\/h4>\n