Probate applications that require a full Inheritance tax account (IHT400) to be submitted to HMRC will now require a code from HMRC to be entered into the online HMCTS application (or paper application) before they can be submitted.
Probate applications that require a full Inheritance tax account (IHT400) to be submitted to HMRC will, from today (18th January 2024), require a code from HMRC to be entered into the online HMCTS application (or paper application) before they can be prepared, signed and submitted.
The new steps will now be to:
- send the IHT400 form to HMRC
- wait 20 working days for HMRC to send you a letter with a code.
- enter the code on HMCTS. You cannot complete and submit your probate application until you have received a letter with a code from HMRC.
Previously, applicants would send form IHT421 to HMRC along with the IHT400 and supporting schedules. HMRC would then process the account and, once inheritance tax had been paid, stamp form IHT421 and send this straight to HMCTS without confirmation to the applicants. The executors or the administrators were still able to sign the executors statement and hold onto this before submitting to HMCTS.
Any IHT400 accounts submitted to HMRC before todays date will still operate under the old system, it will only be accounts received on or after the 18th January.
Given the already frustrating timescales for HMCTS to actually process an application once received, the replaced system often led to applicants being unaware that HMRC had not processed their application or issued IHT421 in a timely manner, compounding the delay for probate to be issued. Historically, before the digitalisation of probate, the IHT421’s had been returned to the solicitors to lodge with their application and so the solicitors were fully aware if there was a delay with HMRC and could take appropriate action to pursue matters.
Under the new system, not only will solicitors and applicants be able to determine if HMRC has processed their inheritance tax account by the issuing of a code, the delay caused by HMTCs stopping an application whilst waiting for HMRC to issue the IHT421 should also be less frequent. We shall have to wait and se however how long in practice it takes to get a code from HMRC and the knock on effect of executors statements then having to be finalised and submitted.
For assistance with estate administrations or indeed Inheritance tax planning during a lifetime, please contact you local Clark Willis Solicitors office where our specialist probate team will be able to help you.
