In most cases, when a person dies, the right to receive payments under a pension or retirement annuity or
under a purchased life annuity, ceases on the death. In some cases, however, the annuity may be
guaranteed for a fixed period and the person dies before the end of that fixed period. The payments may then
continue to be paid to the estate until the fixed period comes to an end. The value of that right to receive the
remainder of the payments should be included as an asset of the estate.
2.	 This form will provide an estimate of the open market value of the guaranteed annuity payments which are to
be paid to the estate in straightforward circumstances, as set out below. The values calculated are for
guidance and you are free to submit your own alternative valuation. However, we consider that the values
produced by this form represent reasonable estimates of the open market values under s.160 IHTA 1984.
3.	 You may use this form if
the amount paid each year is constant, or
the amount increases each year by a fixed percentage, and
there is no option to have a lump sum paid instead of the future instalments (often called a commuted
4.	 You should not use this form if
the amount paid each year varies, but the increase or decrease is not a fixed percentage each year, (for
example, it is an index-linked, or a ‘with-profits’ annuity), or
if you consider that higher rate tax, rather than basic rate tax should be accounted for in the calculation.
If there is an option to receive a lump sum instead of the future instalments, then the value of this lump sum
should be included in form IHT 200; in box 2 on page D6 if it is a pension or retirement annuity, or in box 4 on
page D9 if it is a purchased life annuity.
6.	 To use this form, you should fill in the boxes on the next page. There are notes about each box. When you
have filled in all the boxes, click on the calculate button and go to page 3 to see the calculation.