IHTM15023 - Investigation of form IHT404: general investigation points

When you review the form IHT404 you should:

• Check that the deceased’s share offered on the IHT404 matches the extent of the share (IHTM15031) (as confirmed if necessary by Technical)
• Examine the assets in the normal (IHTM09000) way, taking up any valuation points.
• Make sure that the deceased’s share is carried forward and shown correctly in the IHT400 (IHTM10021) and check that any reliefs and exemptions deducted apply.
• Check that any tax on the joint property has been correctly calculated and paid
• Be on the look out for joint property in the IHT400 which is not mentioned on the IHT404, particularly where the joint property passes by Will (IHTM12041) or intestacy (IHTM12101). If you discover that jointly owned land on form IHT405 has already been referred to the District Valuer (IHTM23002) before you have considered the extent of the deceased’s share you may need to change the valuation instructions (IHTM23031).

You should concentrate your effort on cases where there are strong grounds for believing there will be a worthwhile value increase. Investigate any case where there are reasonable grounds for thinking that the deceased’s beneficial interest (IHTM15011) may be different to the share offered in the IHT400 or that the arrangement may have involved a lifetime transfer (IHTM15060) by the deceased. Also bear in mind that the rules relating to gifts with reservation (IHTM15061) may be relevant, especially where the deceased had (or is claimed to have) made a gift to the other joint owner(s) when the joint ownership began after 18 March 1986.