HMRC procedure change speeds up confirmations

The Trust & Succession Committee of the Law Society of Scotland, along with HMRC and the Scottish Courts & Tribunals Service, have agreed changes in procedure for IHT400 accounts that require to be sent to HMRC in advance of applying for confirmation to a deceased's estate.

The changes have been introduced in order to improve turnaround times with HMRC in order that confirmation can be granted to the estate without significant delay.

As of 1 May 2017, there is no longer a requirement to submit the principal C1 to HMRC for stamping and return. Instead, a copy of the C1 should be sent when submitting the IHT400. HMRC will send a certificate confirming that the inheritance tax has been paid. The certificate will include a unique reference that will replace the previous stamp.

The certificate can thereafter be submitted to the relevant sheriff court along with the C1. The same process will apply for any corrective C4s.

Over the past month, the new process seems to have been effective. The turnaround times with HMRC seem to have been significantly reduced, which has enabled confirmation to be granted to large estates promptly.