Inheritance tax reporting requirements to change from January 2022

The government has announced that from 1 January 2022, changes will be made to the inheritance tax reporting requirements for non-tax paying estates. These changes will mean that as from 1 January 2022, most non-tax paying estates will no longer have to complete inheritance tax forms for death where Probate or confirmation is required.

Whilst these changes will simplify the Probate application process on a death of a first spouse, the lack of a paper trail may mean claiming all available inheritance tax allowances on the death of the second spouse may be made more difficult. This is because there may no longer be copies of inheritance tax forms submitted on the first spouses death confirming which allowances had been used and which had not. Guest Walker would recommend that even though an inheritance tax return may not be required, in future families keep –

  • a careful note of how the estate a first spouse to die passes, plus details of any lifetime gifts made by that first spouse; and
  • a copy of the first spouses Will;
  • a copy of the marriage certificate; and
  • a copy of the first spouses death certificate.

This should all make the administration of the second estate and claiming all allowances much more straightforward

Should families require advice regarding these changes or any aspects of the administration of estate, please do not hesitate to contact our experienced and family Life Planning team on 01904 624903 or email reception@guestwalker.co.uk.

 

Hudda Morgan

Previous

Next