Iht400 query

[Vik2001]

On iht400, questions 30 asks: was any lifetime gifts made after 1986 yes or no. So do I have to list all lifetime gifts the deceased made after 1986?
if I say yes it directs me to form iht403 which asks about gifts made in last 7 years ans gift with reservations

[Pezza54]

The Gifts with Reservation rules do not apply to gifts made before 18 March 1986 even if there is a reservation of benefit after then
Yes you should list all gifts made after that date on HT403. Bear in mind the value of the gift. Please read the rules and guidance notes about completing the forms

[atticus]

If a question is asked, you should answer it.

[Pezza54]

I thought I did. First sentence 2nd paragraph

[PallasAthena]

The HMRC guidance note about box 30 may also help:

Gifts and other transfers of value

You can tick 'No' and do not need to fill in Schedule IHT403 if the only gifts made by the deceased were in the following categories:

- to their spouse or civil partner and Spouse or Civil Partner Exemption applies
- outright gifts to any individual which do not exceed £250 in any one year (these will be covered by the Small Gifts Exemption)
- outright gifts to any individual of money or listed stocks and shares that are wholly covered by the Annual Exemption
- outright gifts made regularly from income where the total gifts did not exceed £3,000 in each year

These exemptions are detailed on page 74 of this guide. If the deceased had made any other gifts or 'transfers of value' since 18 March 1986, including transfers into trust, payment of insurance premiums for the benefit of another person, advances out of a trust fund or any assets that were taken out of a trust before death, you must fill in Schedule IHT403, 'Gifts and other transfers of value'. In general, a 'transfer of value' is any transaction where the deceased did not receive full value in exchange.

As a side comment I found this a next to impossible question to answer to the full extent HMRC require when I was executor. Gifts within the last 7 years would (probably) be identifiable from bank statements but how would I ever know if the deceased had given away gifts 35 years ago if there were no financial records going back that far in the insured's papers? Banks, I discovered, are unable to produce bank statements older than about 7 years. HMRC may believe/hope everyone keeps meticulous finacial records of all their income and expenditure for their whole adult life for when probate comes but in the real world they don't.

[Vik2001]

Fqther died in 2024. So if father made gift of 10k to Son in 2001 this needs to be declared? If so where in form 403 as it was not in last 7 years.
if father made a gift of family house to son in 2010 , father did not live in house after so no reservation of benefit, does this need to be declared? This also was not in last 7 years of death.
father died in 2024

But q.30 asks iof gifts were made after 1986, surely its not asking about all gifts after 1986, just the ones in last 7 years or those reserving a benefit?

[Pezza54]

You can check with the helpline on page 1 of IHT 400 or 403
In my opinion:
You need to tick yes to question 30 on IHT 400. The gifts were made after 1 March 1986 and do not fall under any of the categories given in IHT 400 Notes (item 30)
You should complete IHT 403 ticking no to the questions about gifts. The gifts your father made were not within 7 years of the date of his death, nor did he reserve any benefits

[Vik2001]

Got ya. Just seems silly to say yes and submit a blank iht403. Surely as well hmrc font expect us to keep records of every gift after 1986.

What would be the implications of saying no to q
30 if I have nothing to actually declare no gifts or gwr issues in last 7 years. Would I get into trouble?

I did actually ring up the iht helpline about this question this week. One person told me to answer no as it's only concerned with gifts in last 7 years. The 2nd person who I asked said answer yes, so had conflicting advise.

[Pezza54]

My advice is to get a 3rd opinion on the helpline. This time make a note of the date, time and the name of the person you speak to.
Follow their advice and you shouldn't have a problem if the action you take is ever queried by HMRC