The process of filling tax returns covers nearly all sources of income generated in favor of taxable individuals whether from their personal ventures or income generated from inherited estates. Filling returns for the different categories of tax require different forms as each form is tailor made to cover the variable specifics surrounding each taxable source of income.
How to determine the right form to fill.
In this category, we are going to narrow down our focus to the inheritance tax forms. In most cases people tend to overlook the fact that inheriting an estate may also mean having to take over the overall obligations of running the inherited estate including the management of is taxes as well as its liabilities. In many countries, the inheritance tax forms come in different groupings depending on the nature of the estates inherited. The most prominent categories are determined by the following significant factors.
* Whether the inheritance is an excepted estate or not
* The deceased's permanent residence prior to his/her demise.
* Whether the inherited estate had any tax arrears at the point of the previous owner's death.
* The need to send in any corrections affecting the status of your inheritance tax
* Whether the inherited estate had any tax dues on a trust.
Different types of inheritance tax forms
First and fore most, it is worthy to note that the tax on chargeable events also commonly known as inheritance tax on trust is the same in almost all countries. The form required t fill out this tax return is the form IHT100-Inheritance Tax Account. This may however be complemented by an event form and other supplementary pages depending on prevailing circumstances.
Most inheritances fall in the category of excepted estates, a term used to refer to estates with no inheritance tax to pay. If your inheritance falls under this category, you will be required to fill the Return of Estate Information form. This form will be available in different forms depending mainly on the deceased's residence and the date of their death. There are however cases where the inherited estate was due in tax. Under such circumstances, a full Inheritance Tax Account is required. The form IHT400 will come in handy in this situation.
In the British tax system however the place of residence of the deceased and the value of his/her estates within or out of England are a major factor to consider when filling the inheritance tax returns. In such cases if the deceased owned assets under pounds 150,000, then you will need to fill the IHT207-Return of Estate Information.