Update from the most recent HMRC Trusts and Estates Advisory Group

Representatives from ILM attended the most recent HMRC Trusts and Estates Advisory Group on 3^rd December.

We are able to report and confirm the following items of relevance to our members.

• The nil-rate band, residence nil-rate band and the £2 million starting point for the residence nil-rate band taper will remain until 6 April 2031.
• The £1 million allowance for the 100% rate of APR/BPR will be fixed until 6 April 2031.
• The £1 million allowance for the 100% rate of APR and BPR will be made transferable between spouses and civil partners.
• If personal representatives (PRs) expect IHT to be due, they can instruct pension scheme administrators to withhold up to 50% of taxable benefits for 15 months.
• PRs will be discharged from liability for any unknown pension funds discovered after receiving HMRC clearance.

In addition, we were told that HMRC have prioritised resources to exceed the Service Level Agreement for IHT400 account processing and have reduced outstanding repayments and amendments by training and deploying new staff.

For context about 1,500 IHT400’s are received each week. Although IHT100 submissions have risen (they now run at about 250 per week) and processing has been outside the SLA, they have doubled resources for this task and expect to meet targets by the end of the financial year.  

Over 85% of calls are answered, with priority given to updates on repayments, amendments, and clearance requests within 10 working days. they expect to process most repayments within 15 working days by early January and aim to achieve the same in relation to clearance requests by the end of the financial year.