IHT419 Page 1 HMRC 01/18
Debts owed by the deceased
Schedule IHT419
Name of deceased
Date of death DD MM YYYY
IHT reference number (if known)
When to use this form
Fill in this form if you wish to deduct any of the following
from the value of the estate on form IHT400:
• money that was spent on behalf of the deceased and
hasn’t been repaid
• loans or overdrafts
• liabilities related to a life assurance policy where the sum
assured isn’t fully reflected in the IHT400
• debts that the deceased guaranteed on behalf of
another person
Include these debts on form IHT400, at box 80 or box 82,
as appropriate.
If the deceased died on or after 17 July 2013 there are
some conditions that must be met before a liability can be
deducted. The conditions are to do with:
• what the borrowed money was used for
• whether the money is actually repaid from the estate
If the liability doesn’t meet the conditions, it may not be
deducted from the estate.
The deduction can’t be allowed if:
• the money was borrowed to acquire, maintain or enhance
excluded property - this applies whether the debt is actually
repaid or not
• the money isn’t repaid from the estate
There are exceptions to this:
• the excluded property has since been sold and the money
received is now liable to tax, or if the excluded property
itself has become liable to tax
• there is a real commercial reason for not repaying the
debt, and not repaying the debt doesn’t give rise to a
tax advantage
If any of these exceptions apply say why you think so on this
form at box 6 on page 4 or in the additional information
boxes on pages 15 and 16 of the IHT400.
If a liability that can be allowed as a deduction was used to
acquire, enhance or maintain property that qualifies for:
• Agricultural Relief
• Business Relief
• Woodlands Relief
and was incurred on or after 6 April 2013, you must deduct
that liability from the property concerned before working out
the amount of relief that is due.
More information about liabilities is available on page 49
of the IHT400 notes.
Gifts to, and loans from, the same person
In some cases, special rules apply where the deceased
has both borrowed money from someone and made a gift
to that same person. These types of debts owed by the
deceased are generally not allowed as deductions for
Inheritance Tax purposes.
For more information, phone our helpline on 0300 123 1072.
Help
For information or help or another copy of this form:
• go to www.gov.uk/inheritance-tax
• phone our helpline on 0300 123 1072
- if calling from outside the UK, phone
+44 300 123 1072
