Quite an increase

Inheritance tax is a controversial subject, and in my experience most people do not wish to pay any if they can avoid it.

The process is complex, and was made more complicated by the introduction of the Residential Nil Rate Band on 6th April 2017.

Quilter’s findings below demonstrate that there has been an increase in the number of investigations opened by the Revenue. The process can be rather drawn out and an investigation will mean that it takes even longer to obtain ‘inheritance tax clearance’ from HMRC.

When a loved one dies it has always been important to obtain legal advice, but with the complicated provisions, large amounts of paperwork, and almost 1/4 cases being investigated it is imperative that appropriate advice is obtained. HMRC have the ability to raise penalties for late payment and incorrect filing. As stated below, the majority of people are not trying to defraud HMRC but it is easy to make mistakes if you do not speak to an expert. Here at Hedges we have years of experience of dealing with HMRC, which can be priceless in avoiding an investigation or ensuring that it proceeds smoothly.

If you need help obtaining Probate, inheritance tax advice or help dealing with the administration of the Estate then myself or one of my colleagues would be happy to assist.

Almost quarter of estates investigated over IHT
In the 2018 to 2019 tax year, HMRC opened 5,537 inheritance tax (IHT) investigations, which equated to almost one in four (23%) of the 22,000 estates on which the tax is due

This was a 3.4% increase on the 5,354 investigations opened by the Revenue the previous year, according figures gained from a freedom of information request by wealth advisers Quilter.

Gordon Andrews, tax and financial planning expert at Quilter, said that IHT has long been recognised as 'complex and at times deeply unfair”, adding that on top of this there is also one in four chance of being investigated by HMRC.