HMRC investigating one in four estates
It has been reported that HMRC is investigating almost one in four estates on which Inheritance Tax is due.
It has been reported that HMRC is investigating almost one in four estates on which Inheritance Tax (IHT) is due. There has been a notable increase in the number of investigations opened since the introduction of the residence nil rate band in April 2017.
Receipts from IHT in the UK equate to around £5.2 billion per year, but the IHT regime is complex and the Office of Tax Simplification has recently published a report recommending an overhaul of the current system.
Lorraine Wilson, Solicitor at Weightmans LLP, comments “for those whose estates are likely to fall within the remit of IHT, this is a reminder of the importance of taking professional advice. With HMRC investigating 23% of taxable estates, it is crucial that any estate planning undertaken by individuals is within the scope of the rules. For Personal Representatives dealing with a taxable estate, they may require assistance to ensure that the appropriate reliefs are claimed in order to mitigate IHT so far as it is possible to do so.”
Our team of specialists at Weightmans LLP can advise on lifetime estate planning and the administration of taxable estates. For more information, contact Lorraine Wilson on firstname.lastname@example.org or 0161 214 0532.