Form

How to fill in form IHT100b

Updated 18 October 2024

When you should complete this form  

You should use this form to tell HMRC when a beneficiary’s interest in possession in a trust comes to an end during their lifetime.  

Do not us this form to tell us if the ending of the interest in possession is due to the person’s death. These events need to be reported by the trustees of the trust on form IHT418 instead.   

Before you start 

You should complete all fields. If information is missing, we may not be able to deal with your form. 

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. 

Section A: about the person whose interest has come to an end 

You must include and name and personal details of the person whose interest has come to an end.  

Section B: details of the person dealing with this event 

You should include the name and personal details of the person dealing with the chargeable event.   

If you’re filling in the form without the help of a solicitor or accountant and want HMRC to write to you but someone else to deal with telephone calls, you should include separate written authority when you send the form to us.   

Section C: about the trust and the event 

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

The date the trust started  

This is the date when the assets where first put into the trust.    

Unique Taxpayer Reference (UTR)  

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 unique taxpayer reference (UTR) leave box C4 blank. 

About the event 

You need to tell us when the beneficiary’s interest in possession began and ended.  

You must also tell us how it ended and who the assets have been transferred to. There is no Inheritance Tax due on assets that have been transferred to any of the following: 

• a beneficiary absolutely — this means the beneficiary has complete ownership of their share of the trust’s assets 

• a disabled person’s trust 

• a trust for a ‘bereaved minor’ 

You should only give a summary of the assets and their values in box C8. You should give a more detailed breakdown of the assets in section F and any supplementary pages listed in section E.  

If the beneficiary received anything in return 

If the beneficiary received anything in return for transferring the assets, the value of the transfer is reduced by the value of whatever they received in return.  

You should tell us the value of what was received in return in box C9 and carry this forward to boxes G3 and G4.  

Section D: about the settlor 

You must include the name and personal details of the settlor.    

Check the deemed domicile rules for Inheritance Tax if you’re not sure if the settlor was domiciled or deemed to be domiciled in the UK.  

Section E: 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. 

The transferor or settlor is domiciled outside the UK  

You should fill in schedule D31 if have said that the transferor or settlor is either: 

• domiciled in a foreign country  

• treated as domiciled in the UK 

Find out more information about the deemed domicile rules for Inheritance Tax.  

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 fill in 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 fill in schedule D35 if the assets include any household and personal goods. 

If land and buildings are included 

You should fill in 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 F: assets in the UK chargeable to tax as part of this transfer 

You must fill in section F with details all the assets that are part of this transfer.  

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 F2 should show the total of all bank and building society accounts. 

Assets where tax can be paid in instalments  

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

Find out more about assets that can be paid in instalments.   

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

F1 Houses, buildings and land 

You must include the value of all, freehold, leasehold, heritable and other immovable property in the UK included in this transfer. Do not include farmhouses and farmland.    

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

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

F2 Bank, building society and other financial accounts   

You must include all accounts with a:   

• bank   

• building society   

• mutual, friendly or co-operative society   

• supermarket    

• 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.   

F3 Cash  

This includes any cheques made out to the transferee.  

F4 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 NS&I website) if you do not know the value at the date of transfer. 

F5 Household and personal goods  

You should include all of the goods included in the transfer. For example, china, clothes, jewellery and cars.  

You also need to fill in schedule D35.    

F6 Life assurance, pensions and mortgage protection policies  

Tell us about any pensions and policies 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.    

F7 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 must fill in schedule D32 to tell us about them.   

F8 Listed stocks, shares and investments   

 You should include:   

• all stocks, shares, 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 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 F12.    

You must also fill in schedule D32.   

F9 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 F7, F8, F10, F11 and F12 due at the date of transfer but which had not yet been paid.    

F10 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 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 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.    

F11 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 E11. You can find this value in boxes 3 and 4 in Schedule D32.   

F12 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 OFEX   

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

F13 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 you want to claim relief on
• fill in schedule D37 to claim Agricultural Relief

F14 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 F14.   

F15 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.   

F16 Debts due to the Trust   

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

F17 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.  

F18 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 G: 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’s, estate agent’s or valuation fees incurred in dealing with the event 

If consideration for this transfer was received by the beneficiary, you should apportion the value given at C9 and enter it in box: 

• G1 using the formula (F19 ÷ (F19 + F20) × C9) 

• G2 using the formula (F20 ÷ (F19 + F20) × C9)

Liabilities   

For box G1, you should list all the debts owned by the transferor that can be deducted from the assets included in section F, 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 G2, you should only include reliefs and excluded property against assets listed in section F, 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.

Find out about:

• exemptions in section IHTM11000 of the Inheritance Tax Manual
• Agricultural Relief
• Business Relief

To deduct reliefs against the assets listed at boxes F1 to F18 you should write the title of the relief and the amount that you want to deduct in the space provided.   

For box G3, only include reliefs against assets listed in section F, column A. Add together the reliefs and write in the total box.   

For box G4, only include reliefs and excluded property against assets listed in section F, column B.    

Section H: working out the tax 

Earlier transfers made by the transferor  

We need to know about any earlier gifts made by the person whose interest in coming to an end.  

You should tell us about any chargeable gift that was not covered by exemptions and was either made:  

• before 18 March 1986  

• on or after 18 March 1986 and given to a company or trustee of a discretionary trust  

Do not include gifts:  

• from one person to another   

• to an accumulation and maintenance trust   

• to a trust for the disabled 

Quick succession relief 

This applies where there are 2 separate Inheritance Tax charges on the same assets within a 5 year period.   

The amount of relief you can claim depends on how long it’s been since the last charge. It can only reduce the tax to nil and cannot be used to claim a repayment.  

Use the following table to help you work out how much relief you can claim. You should enter the amount in box H10.  

How much relief you can claim 

Period between Inheritance Tax charges	Amount of relief (%)	Amount of tax payable (%)
Within one year	100	0
Between one and 2 years	80	20
Between 2 and 3 years	60	40
Between 3 and 4 years	40	60
Between 4 and 5 years	20	80
5 years or more	0	100

Example  

Adam died in October 2015. His estate was worth £500,000 and he left it in an interest in possession trust for his son Peter. £70,000 of Inheritance Tax was paid on his death.  

4 and a half years later Peter gives up his life interest in favour of his son, who is also a beneficiary of the trust. Inheritance Tax is due on this event and the trust must pay £35,000 to HMRC.  

As the event took place within 5 years of the last charge, they’re eligible for relief. The trust can claim 20% relief which reduces the amount due to £28,000. 

If you need to work out the interest due  

You must pay Inheritance Tax no later than 6 months after the end of the month when the event occurred.  

If you pay after the due date then interest is added to any unpaid tax and is charged at a daily rate.  

Use the interest rate calculator to work out any interest due and enter this in the summary table in box H15.   

Section I: authority for repayment of Inheritance Tax 

If we need to repay any Inheritance Tax, we’ll make the payment directly to the bank account in the names of all the people who have signed the form by Faster Payments.   

If you do not have a bank account in those names, it may be difficult for you to obtain the repayment.   

To avoid any difficulties, give the details of the account you want the repayment paid into. 

Section J: 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 IHT100 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 12:   

‘As the agent acting on their behalf, I confirm that all the people whose names appear on the declaration page of this form IHT100 have seen the IHT100 and agreed to be bound by the declaration on page 10 of the IHT100.’  

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 IHT100b are the trustees and have both seen the IHT100b and agreed to be bound by the declaration on page 10 of the IHT100b.’

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 E)

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.