Inheritance tax (IHT) numbers

If you need to pay Inheritance Tax (IHT) on a deceased’s estate or a large gift into a trust, you may need an Inheritance Tax number before making the payment. HMRC uses this number to track tax liabilities, ensuring payments are correctly allocated.

Applying for your number is a crucial step in managing IHT compliance, whether for an estate or a taxable gift.

How to Apply for an Inheritance Tax Number

Applying Online

If you need to pay IHT on an estate, you can apply for an Inheritance Tax number online via HMRC. This streamlines the process, making it faster and easier to receive the reference needed for payments.

Using Form IHT422 for Gifts into Trust

For other taxable IHT events—such as gifts into trust exceeding the IHT allowance—you must complete Form IHT422 instead of applying online. This form ensures that any lifetime transfers subject to IHT are properly recorded and assessed by HMRC.

When Is an Inheritance Tax Number Required?

An IHT number is necessary when:

• Paying Inheritance Tax on an estate where the deceased’s assets exceed the nil-rate band.
• Making gifts into trust that surpass available IHT allowances, triggering an immediate tax charge.

Without an IHT number, HMRC may not process tax payments correctly, leading to delays or penalties.

How We Can Help

Navigating Inheritance Tax can be complex. At Lewis Brownlee, we provide expert advice on:

• Inheritance Tax planning to reduce liabilities.
• Applying for an Inheritance Tax number efficiently.
• Completing Form IHT422 for taxable gifts into trust.

If you need help with IHT compliance, contact us today via our contact page for professional guidance. We are always happy to see how we can help. Plus, we offer a free introductory meeting so that you can find out what we do and how we do it before you commit!

Managing Inheritance Tax correctly ensures compliance and helps avoid unnecessary delays in estate administration. So, make sure you’re on top of it today!