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Overview

There are often questions over rounding differences which occur with transactions entered in the IHT411 and IHT412.  HMRC also use conventional rounding in their form calculations, which goes against the standard principles of rounding assets down for the purposes of IHT calculation. In addition, not all forms and sections use the same principles.

The purpose of this document is to document the current method of rounding in the fields within the IHT411 and IHT412, to assist users in the event of query.

IHT411, Question 1 Rounding (Form or Overflow Schedule)

Individual Records

• Market price per unit at date of death - Rounded down/truncated, to 4 decimal places.*
• Total value of stock at date of death - Calculated by the 'Units' multiplied by the full 'Market Price'.  Conventional rounding, to 2 decimal places is then applied.
• Dividend or interest due to the date of death - A data input field, not calculated. Any entry here in excess of 2 decimal places will have conventional rounding applied, to 2 decimal places.

Totals

• Total value of stock at date of death - The individual entries are totalled first. Conventional rounding, to 0 decimal places is then applied.
• Dividend or interest due to the date of death - The individual entries are totalled first. Conventional rounding, to 0 decimal places is then applied.

IHT411, Question 2 Rounding (Form or Overflow Schedule)

Individual Records

• Market price per unit at date of death - Rounded down/truncated, to 6 decimal places.*
• Total value of stock at date of death - Calculated by the ‘Units’ multiplied by the ‘Market Price’ (rounded down/truncated to 6 decimal places).  Conventional rounding, to 2 decimal places is then applied.
• Dividend or interest due to the date of death - A data input field, not calculated. Any entry here in excess of 2 decimal places will have conventional rounding applied, to 2 decimal places.

Totals

• Total value of stock at date of death - The individual entries are totalled first. Conventional rounding, to 0 decimal places is then applied.
• Dividend or interest due to the date of death - The individual entries are totalled first. Conventional rounding, to 0 decimal places is then applied.

IHT412, Question 1 Rounding (Form or Overflow Schedule)

Individual Records

• Market price per unit at date of death - Rounded conventionally, to 4 decimal places.*
• Total value of stock at date of death - Calculated by the ‘Units’ multiplied by the ‘Market Price’ (rounded down/truncated to 4 decimal places).  Conventional rounding, to 2 decimal places is then applied.
• Dividend or interest due to the date of death - A data input field, not calculated. Any entry here in excess of 2 decimal places will have conventional rounding applied, to 2 decimal places.
• Amount of business relief (BR) due - A data input field, not calculated. Any entry here in excess of 0 decimal places will have conventional rounding applied, to 0 decimal places.

Totals

• Total value of stock at date of death - The individual entries are totalled first. Conventional rounding, to 0 decimal places is then applied.
• Dividend or interest due to the date of death - The individual entries are totalled first. Conventional rounding, to 0 decimal places is then applied.
• Amount of business relief (BR) due - The individual entries are totalled. No further rounding is applied.

IHT412, Question 2 Rounding (Form or Overflow Schedule)

Individual Records

• Market price per unit at date of death - Rounded conventionally, to 4 decimal places.*
• Total value of stock at date of death - Calculated by the ‘Units’ multiplied by the ‘Market Price’ (rounded down/truncated to 4 decimal places).  Conventional rounding, to 2 decimal places is then applied.
• Dividend or interest due to the date of death -  A data input field, not calculated. Any entry here in excess of 2 decimal places will have conventional rounding applied, to 2 decimal places.
• Amount of business relief (BR) due - A data input field, not calculated. Any entry here in excess of 0 decimal places will have conventional rounding applied, to 0 decimal places.

Totals

• Total value of stock at date of death - The individual entries are totalled first. Conventional rounding, to 0 decimal places is then applied.
• Dividend or interest due to the date of death - The individual entries are totalled first. Conventional rounding, to 0 decimal places is then applied.
• Amount of business relief (BR) due - The individual entries are totalled.  No further rounding is applied.

IHT412, Question 3 Rounding (Form or Overflow Schedule)

Individual Records

• Market price per unit at date of death - Rounded conventionally, to 4 decimal places.*
• Total value of stock at date of death - Calculated by the ‘Units’ multiplied by the ‘Market Price’ (rounded down/truncated to 4 decimal places).  Conventional rounding, to 2 decimal places is then applied.
• Dividend or interest due to the date of death - A data input field, not calculated.  Any entry here in excess of 2 decimal places will have conventional rounding applied, to 2 decimal places.
• Amount of business relief (BR) due - A data input field, not calculated. Any entry here in excess of 0 decimal places will have conventional rounding applied, to 0 decimal places.

Totals

• Total value of stock at date of death - The individual entries are totalled first.  Conventional rounding, to 0 decimal places is then applied.
• Dividend or interest due to the date of death - The individual entries are totalled first.  Conventional rounding, to 0 decimal places is then applied.
• Amount of business relief (BR) due - The individual entries are totalled.  No further rounding is applied.

IHT412, Question 4 Rounding (Form or Overflow Schedule)

Individual Records

• Market price per unit at date of death - Rounded conventionally, to 4 decimal places.*
• Total value of stock at date of death - Calculated by the ‘Units’ multiplied by the ‘Market Price’ (rounded down/truncated to 4 decimal places).  Conventional rounding, to 2 decimal places is then applied.
• Dividend or interest due to the date of death - A data input field, not calculated.  Any entry here in excess of 2 decimal places will have conventional rounding applied, to 2 decimal places.
• Amount of business relief (BR) due - A data input field, not calculated. Any entry here in excess of 0 decimal places will have conventional rounding applied, to 0 decimal places.

Totals

• Total value of stock at date of death - The individual entries are totalled first.   Conventional rounding, to 0 decimal places is then applied.
• Dividend or interest due to the date of death - The individual entries are totalled first. Conventional rounding, to 0 decimal places is then applied.
• Amount of business relief (BR) due - The individual entries are totalled.  No further rounding is applied.

IHT412, Question 5 Rounding (Form or Overflow Schedule)

Individual Records

• Market price per unit at date of death - Rounded conventionally, to 4 decimal places.*
• Total value of stock at date of death - Calculated by the ‘Units’ multiplied by the ‘Market Price’ (rounded down/truncated to 4 decimal places).  Conventional rounding, to 2 decimal places is then applied.
• Dividend or interest due to the date of death - A data input field, not calculated.  Any entry here in excess of 2 decimal places will have conventional rounding applied, to 2 decimal places.
• Amount of business relief (BR) due - A data input field, not calculated.  Any entry here in excess of 0 decimal places will have conventional rounding applied, to 0 decimal places.

Totals

• Total value of stock at date of death - The individual entries are totalled first.  Conventional rounding, to 0 decimal places is then applied.
• Dividend or interest due to the date of death - The individual entries are totalled first.  Conventional rounding, to 0 decimal places is then applied.
• Amount of business relief (BR) due - The individual entries are totalled.  No further rounding is applied.

* This is on the assumption that within each of the investments, the 'Unit Precision' is noted on that Investment (Wealth Management, Investment tab, Investment Details) is set to allow for the number of decimal places required.

These notes are confirmed to be applicable from Troika release 2.08.017.