Hi, I've always lived with my parents and 20 years ago they changed the ownership of the house so we had 1/3 each as tenants in common. They continued to pay the bills. My dad has now died and I'm filling in the inheritance tax forms. As I understand it that gift is now out of the estate and isn't a Gift with Reservation of Benefit as we fulfilled the exemption set out in s.102(b)(iv) Finance Act 1986.
I thought because on IHT404 (jointly owned assets) I've put that the contribution of each joint owner was 50% for each of my parents and 0% for me they might query something, so I phoned up the Inheritance Tax helpline to ask if they wanted me to send proof of my continued residence in the house and my parents bills, but they said I had to fill in form IHT403 as well, but would give me no advice on how to do it.
This is the only thing I'm stuck on. The only place I can see is relevant is page 5, "Gifts with reservation of benefit".
So do I treat it as if it is a GROB and then explain the exemption?
ie: q8 "did the deceased transfer any assets...where the deceased continued to have use & enjoyment or a right or benefit from the gifted asset" the answer would be "yes"?
q10 is similar, refering to house or land "did the deceased...continue to have a significant right or interest.. which enabled them to occupy or have some benefit from it" so, if the answer to question 8 is "yes" it would be "yes" for question 10 as well? (I would answer "no" to the other questions).
In section 12 I would then list s.102(b)(iv) Finance Act 1986 exemption as the "type of exemption or relief"?
Does this seem right?
Thanks for any help.