Form

How to fill in form IHT418

Updated 12 August 2024

When to use this form 

You should only fill in this form if both of the following apply: 

• the deceased has the right to benefit from a trust 

• you’re acting as an executor or as both executor and trustee  

You must fill in separate form for each trust.  

Before you start 

Make sure you have read all the relevant notes before you start completing the form.   

Some types of assets could be included in more than one section of the form, such as stocks and shares, so make sure you put them in the right section. Do not include the same asset in more than one section.    

You do not need to send us copies of documents (for example, a letter from a bank with the balance in an account, or evidence of liabilities) unless we specifically ask you to do so.    

You must keep all documents that you have used to fill in the form as we may ask you for some or all of them later. Find out about what records you need to keep.  

Section A: about the trust  

You must include the name and other details about the trust. 

Unique Taxpayer Reference  

This is a 10-digit number. You’ll be sent a UTR when you register for Income Tax or set up a limited company.    

Find out how to find your UTR number.   

If the trust does not have a UTR leave box A3 blank. 

Section B: about the trustees 

You should include the: 

• name and addresses for all trustees of the trust 

• name and contact details for the solicitor or agent acting for the trust 

Section C: your capacity 

There are different sections to complete if you’re acting solely as the: 

• executor or administrator of the estate — fill in sections D and I 

• trustee of the trust — fill in sections E, F, G, H, I and the declaration  

In some circumstances the trustees will pay tax at the same time that the estates legal personal representatives apply for a grant. This can happen if the trustees and the personal representatives are the same people.  

If you’re acting as both as the executor or administrator of the estate and trustee of the trust, you should fill in sections E, F, G, H, I and the declaration.  

Section D: acting solely as the executor or administrator of the estate 

You should only complete this section if you’re both: 

• acting solely as the executor or administrator of the estate 

• aware of any assets that were held in the trust for the benefit of the deceased 

You must send this completed form to HMRC with form IHT400 and any relevant schedules.

Deceased’s interest in possession 

You must tell us if the deceased had any of the following interests.   

An interest in possession that started before 22 March 2006 

An interest in possession trust is a trust that holds property for a person (or a company) who has a ‘right’ to the income or the enjoyment of the property held. Before 22 March 2006 this was known as a qualifying interest in possession (QIIP) trust.  

After this date, a qualifying interest in possession trust can only form if it’s one of the following: 

• an immediate post-death interest 

• a disabled person’s interest 

• a transitional serial interest  

Find more information about the types of interests in possession.  

An immediate post-death interest 

This forms when a beneficiary receives the benefit of an interest in possession trust. It’s created by a will or under intestacy rules. It does not qualify as a trust for a bereaved minor, or a disabled persons interest.  

A disabled person’s interest  

This is a trust for a disabled person that meets certain requirements about how income and capital of the trust may be used during their lifetime. It’s treated as a qualifying interest in possession and forms part of the beneficiary’s estate on their death.  

A transitional series interest 

This is an interest in possession trust that’s not a bereaved minors trust or a disabled person’s interest. It can form in 3 ways. 

The first is as an interest in possession trust that started between 22 March 2006 and 5 October 2008. It must follow a previous interest in possession trust that was in effect before 22 March 2006.  

The second is as an interest in possession trust that passes to the beneficiaries spouse or civil partner after their death. This only applies to trusts that are passed on after 5 October 2008.   

The third is where the trust property is a life insurance policy and there’s an unbroken chain of interest in possessions ending on death. 

Purchased interest in possession 

This is an interest in possession in a trust that was purchased by the beneficiary: 

• in an arm’s length transaction 

• on or after 9 December 2009 

• when the beneficiary was domiciled in the UK 

Assets in the trust  

You must include a description of the assets in the trust and their values. These assets qualify for payment of Inheritance Tax by instalments.  

Other assets in the trust 

You must include a description of all the other assets in the trust and their values. These assets do not qualify for payment of Inheritance Tax by instalments.  

Future right to assets in the trust 

The deceased may have been entitled to some assets in a trust but someone else is receiving the benefit from them during that person’s life. The deceased’s estate will not receive the assets until after the other person has died. This is known as a reversionary interest or an interest in expectancy.

If you’ve answered ‘Yes’ to question D4 or D5, you should include: 

• an estimate of the value of the assets at the date of death 

• the name and age of the person receiving the benefit  

Do you complete this form if you’ve answered ‘No’ to questions D4 or D5 and did not put a cross in any of the boxes at D1.  

Section E: acting either solely as the trustee or both the executor or administrator of the estate and the trustee of the trust 

You should only complete this section if you’re acting as either: 

• solely the trustee  

• both the executor or administrator of the estate and the trustee  

About the person who has now died 

You must include details about the beneficiary of the trust who has now died.  

Name and address of the person or business dealing with the event 

You should include the name and personal details of the person dealing with the trust. This may be different to the to the details given in section B.  

You should also include the details of the account you want any repayments paid into.  

Section F: details of the schedule pages 

You may need to fill in more sections, known as schedules, if you’re telling HMRC about any of the following. 

If stocks and shared are included  

You should fill in schedule D32 if the assets include any stocks and shares.  

If any debts are owed to the trust  

You should complete schedule D33 if there was any money on loan from the trust. For example, a mortgage or personal that has not been repaid at the date of the chargeable event. 

If any insurance policies were involved    

You should fill in schedule D34 if any insurance policies are included in the event. 

If household and personal goods are included   

You should complete schedule D35 if the assets include any household and personal goods. 

If land and buildings are included  

You should complete schedule D36 if the assets include land, buildings, trees, or underwood in the UK.   

If you’re claiming Agricultural Relief   

You should fill in schedule D37 if you’re deducting Agricultural Relief. 

If you’re claiming Business Relief  

You should fill in schedule D38 if you’re deducting Business Relief.   

If foreign assets are included   

You should fill in schedule D39 if any of the outside are outside of the UK. 

Section G: UK assets held in trust 

You must fill in section G with details of all the assets that are apart of this trust.  

You must value all assets as if each item had been sold on the date of the chargeable event. This is called the ‘open market value’.    

Round the value of assets and liabilities down to the nearest £1. Tax should be shown to the nearest penny.    

Each box must show the total of each type of asset. For example, box G2 should show the total of all bank and building society accounts.   

Assets where tax can be paid by instalments  

Assets included under column B can be paid in annual instalments over 10 years.    

Check which assets can be paid in instalments.   

You usually have to pay interest on instalments, but there are some assets which qualify or interest relief. These instalments are only interest-free if the instalment is paid before the due date.     

G1 Houses, buildings and land  

You must include here all freehold, leasehold, heritable and other immovable property in the UK which is included in the transfer. Do not include farmhouses and farmland.   

If you have a professional valuation, attach a copy with this form.    

You will need to fill in schedule D36 giving details of each item of land.   

G2 Bank, building society and other financial accounts  

You must include all accounts with a:  

• bank  

• building society  

• mutual, friendly or co-operative society   

• supermarkets  

• insurance company  

List each account or investment separately in the ‘Additional information’ section. If you have separate figures for capital and interest, show these separately.    

G3 Cash  

This includes any cheques made out to the transferee.   

G4 Premium Bonds and National Savings and Investments (NS&I) products  

List each account or investment separately in the ‘Additional information’ section. If you have separate figures for capital and interest, show these separately.   

Contact National Savings and Investments (on the website) if you do not know the value at the date of transfer.   

G5 Household goods and personal goods  

You should include all goods included in the transfer. For example, china, clothes, jewellery and cars. You also need to fill in schedule D35.   

G6 Life assurance, pensions and mortgage protection policies  

Tell us about any pensions and policies in included in the transfer. If the transaction included a life assurance policy but they were not actually amongst the assets included in the chargeable event you’re telling us about, we need to know about the arrangements.    

You must fill in schedule D34 and include a copy of each policy when you send the form.    

G7 UK government and municipal securities   

You should include:   

• Treasury Stock   

• Exchequer Stock   

• Convertible Stock   

• consolidated stocks and loans   

• Funding Stock   

• Savings Bonds   

• Victory Bonds   

• War Loans   

• government stock held on the Bank of England Register    

• bonds issued by municipal entities (local government authorities)   

You should fill in schedule D32 to tell us about them.   

G8 Listed stocks, shares and investments   

You should include:   

• all stocks, dares, debentures and securities listed in the Stock Exchange Daily Official List   

• unit trusts   

• investment trusts   

• open-ended investment companies   

• shares listed on a recognised stock exchange that are part of an Individual Savings Account (ISA)  

• foreign shares listed on the London Stock Exchange   

Do not include listed shares that gave the deceased control of the company. You should include these in box G12.    

You must also fill in schedule D32. Copy the figure from box 2 on the schedule and enter it in box F8 on this form.    

G9 Dividends or interest on stocks, shares and securities  

Use schedule D32 to complete this box. You should include the total value of dividends and interest on assets in boxes G7, G8, G10, G11 and G12 due at the date of transfer but which had not yet been paid.    

G10 Traded unlisted and unlisted shares except control holdings  

If a company is not listed on the London Stock Exchange, any foreign recognised stock exchange or alternative market, its shares and securities are classed as unlisted.   

You should enter the total value of enter the total value of the following stocks and shares if the settlor did not have control of the company:   

• unlisted stocks and shares in private limited companies   

• shares traded on the Alternative Investment Market (AIM), including shares that are part of an ISA  

• shares held in an Enterprise Investment Scheme (EIS) or in a Business Start-up Scheme (BSS)  

You must also include these when you fill in schedule D32.    

G11 Instalments on shares  

You may be able to pay tax in instalments on unlisted shares that do not qualify for business relief if any of the following apply:

• you can show that paying in one sum will cause financial hardship  
• at least 20% of the tax owed is on assets that qualify for payment by instalments   
• the shares are worth more than £20,000 and make up either:  
  • at least 10% of the value of the total shares issued by the company  
  • at least 10% of the value of ordinary shares held in the company

If you have tax to pay on non-control holdings of unlisted shares, and they qualify for payment by instalments, enter the value of the shares in box G11. You can find this value in boxes 3 and 4 in Schedule D32.

G12 Control holdings of unlisted, traded unlisted and listed shares  

If the person who made the transfer had control of the company you should include:  

• shares traded on AIM including shares that are part of an ISA  

• shares traded on the Off Exchange (OFEX)

You must also fill in schedule D32, including the stocks and shares.    

G13 Farms, farmhouses and farmland  

You should include the total value of assets on which you’re deducting agricultural relief.    

You must also fill in schedule D36, giving full details of assets if you want to claim relief on.     

G14 Businesses including farm businesses, business assets and timber  

You should include the net value of an interest in a business at the date of the chargeable event.   

If the settlor took part in more than one business you may need to fill in schedule D38 for each business or partnership. Enter the total value of all the businesses in box G14.   

G15 Other land, buildings and rights over land  

You should include the value of any other land, buildings or rights over land not included in any other boxes on this form.  This could include:  

• rental properties  

• lock-up garages  

• redundant land  

• derelict property  

• quarries  

• airfields  

• fishing or other rights attached to land  

You must also fill in schedule D36 with details of the land or property.   

G16 Debts due to the Trust  

You should enter the figure from box 3 when you fill in schedule D33.  You should include money:  

• that had been lent and not repaid at the date of the transfer   

• that the transferor had lent to trustees of a trust linked to a life insurance policy held in trust   

• for which the transferor held a promissory note   

• for which the transferor held an ‘IOU’ (director’s loan) account with a company  

G17 Income Tax or Capital Gains Tax repayment  

You should enter the total amount of any tax repaid to the trust. If you do not know the exact amount, you should enter a reasonable estimate.  

G18 Other assets  

You should enter the total value of any other assets not already included.   

You must include the details of these assets in the ‘Additional information’ section. 

Section H: liabilities, exemptions and reliefs 

You should only include debts that were owed by the trust at the date of the chargeable event.     

Do not include:    

• fees for professional services carried out after the date of the event    

• any solicitor, estate agent or valuation fees incurred in dealing with the event 

Liabilities   

For box H1, you should list all the debts owed by the transferor that can be deducted from the assets includes in section G, column A.    

You should fill in the name of the person or organisation that is owed the money and say briefly why the money is owed. If you include a deduction for solicitors’ or accountants’ fees, give the dates for the period during which the work was done.   

For box H2, you should only include reliefs and excluded property against assets listed in section G, column B.   

Exemptions and reliefs   

There are a number of reliefs that reduce the value of the transfer on which you need to pay tax.   

You can find more guidance in section IHTM11000 of the Inheritance Tax Manual.    

To deduct reliefs against the assets listed at boxes G1 to G18 you should write the title of the relief and the amount that you want to deduct in the space provided.   

For box H3, only include reliefs against assets listed in section G, column A. Add together the reliefs and write in the total box.   

For box H4, only include reliefs and excluded property against assets listed in section G, column B.    

Section I: disclosure of tax avoidance scheme 

You should include both the:   

• scheme or promotor reference number if you’ve been given one   

• tax year or date when the tax advantage is expected    

Find out about the rules for disclosure of tax avoidance schemes. 

Declaration 

You must make sure that all trustees have read the declaration and agree that the information given on the form, any schedules and other supporting documents is correct.   

HMRC will accept IHT418 forms without a wet signature as long as the names and personal details of the trustees are shown on the declaration page.   

If you’re an agent  

You must include this statement in the additional information on page 18:   

‘As the agent acting on their behalf, I confirm that all the people whose names appear on the declaration page of this form IHT418 have seen the IHT418 and agreed to be bound by the declaration on page 10 of the IHT18.’ 

If you’re a trustee  

You must include this statement in the additional information on page 12:    

‘As trustee acting in this matter, I confirm that all the people whose names appear on the declaration page of this form IHT418 are the trustees and have both seen the IHT418 and agreed to be bound by the declaration on page 10 of the IHT418.’

Sending us your completed form

You should send the form to the address given at the bottom of the form.

Make sure you include:

• copies of any document we’ve asked for
• any completed schedules (read section F)

Find out what happens after you send us your completed form.

Get help

Contact the Inheritance Tax helpline if you need help completing the form.