IHTM19070 - Procedures: completed form IHT416 received - investigation issues arising - general

If properly completed, form IHT416 will provide all the information you need to decide whether or not it is worthwhile making further enquiries on any of the loans made by the deceased.

If you decide that the amount included in the estate (IHTM04029) is the full face value of the loan, you should accept it. But, if you need any more information to make progress on your enquiry you should ask the taxpayer or agent to supply this.

If the taxpayer or agent produces evidence to show that the debt could not have been repaid on demand, or that the terms of the loan are such that repayment could be deferred or made by instalments, the value will have to be calculated in accordance with IHTA84/S160. Do not make any comment on the valuation but refer the matter to Technical, who will probably need to consult the Board’s Actuarial Officer.

Refer any mortgages affected by the Rent Acts to Shares and Assets Valuation (SAV).

Refer any mortgages repayable by instalments or at a fixed future date to the Board’s Actuarial Officer, via your manager.

You could include sums due from companies on a form Val 70 reference to SAV, since generally the deceased will have had some shares in the debtor company. If no such shares are included in the Inheritance Tax account, you should consider raising the appropriate enquiries with the taxpayer or agent.