How do I prepare an IHT423?

A step by step guide on how to prepare an IHT423 schedule (Direct Payment Schemes for Inheritance Tax)

The IHT423 is controlled through the inheritance tax expense. In order to generate an IHT423, you must first create the expense relating to it.

How do I generate an IHT423?

How do I delete an IHT423? 

What information will be in the IHT423?

How to generate the IHT423 

• Create a tax related expense and choose Inheritance tax for the type of tax payment. Please see here for a guide on how to create expenses 
• Within the settlement area of the expense, choose the account you would like to pay the IHT from within Source of funds and then pick the account
• Once you do this, the question: Do you wish to generate an IHT423 (Direct Payment Schemes for Inheritance Tax) form for this expense? will appear. Click Yes

• Once saved, head back to Estate overview and click in to the Documents & forms section then in to Inheritance Tax forms 
• Generate an IHT400. How do I generate an IHT400?
• Within the IHT400 you will see that box 120; Do you wish to use the Direct Payment Scheme? is now automatically ticked to Yes
• Save and close the IHT400 and you will see the IHT423 appear in the forms section 
• The IHT423 will already be available in the forms section if an IHT400 has been previously generated 

How do I delete an IHT423? 

• Go back to the expense relating to the IHT423 
• On the question Do you wish to generate an IHT423 (Direct Payment Schemes for Inheritance Tax) form for this expense? change the answer to No

• Delete the expense
• The form will automatically be deleted and the IHT400 box 120 question; Do you wish to use the Direct Payment Scheme? will be set to No

What information will be in the IHT423? 

 The full form will be populated with information you have entered in to the platform: