EFIS 52, November 2002 : Inheritance Tax / Inland Revenue

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The Finance Bill 2002 abolished the requirement to deliver an election to the Inland Revenue before an Instrument of Variation takes effect for the purposes of calculating whether any Capital Gains Tax (CGT) or Inheritance Tax (IHT) is payable.

In the majority of cases, the Inland Revenue no longer wishes to see Instruments of Variations and instead has prepared the above checklist to enable practitioners to decide whether a variation will meet the requirements of either CGT or IHT.

The notes on the reverse of IOV2 reflect the main points contained in the Inland Revenue's leaflet IHT8 which the Inland Revenue recommend users to read before completing IOV2.

Practitioners should use IOV2 on receipt and obtain IHT8 if any of the notes on the back of IOV2 fail to clarify the position.

The 41G(Trust) form has also been amended to delete the IHT prefix. Please delete IHT41G and use amended version. Please see deletion instructions below.

The macros have also been amended to the IHTC4 to enhance its performance, and can also be used upon receipt.

Forms affected

IHT41G	Trust Details	Withdrawn
41G(Trust)	Trust Details	New/Amended
IHTC4	Corrective Account/Inventory	New/Amended
IOV2	Instrument of Variation Checklist	New/Amended

Crown copyright forms are reproduced with the permission of the Controller of the Stationery Office. Law Society forms are reproduced with the permission of the Law Society. Legal Aid Forms are produced with the permission of the LSC.