COVID-19 Update: Tozers is providing our usual client services while maintaining the safety of our clients and colleagues. Full update here

Complete the form below to ask us a question or make an enquiry. We’ll get back to you via phone or email as soon as possible.

Insights

Don’t fall foul of Inheritance Tax investigations

Posted on 22nd September 2020 in Later Life Planning

Posted by

Rachael Morley

Associate and Solicitor
Don’t fall foul of Inheritance Tax investigations

A recent Freedom of Information request, published by The Telegraph has shown the confusion over complex Inheritance Tax provisions. The number of estates being investigated by the Revenue is at a four-year high, with numerous families having to suffer scrutiny.

In the 2019-20 tax year, HMRC collected £274 million as a result of over 5,000 investigations. To be clear, this figure is not the Inheritance Tax calculated and paid on all returns, but simply the amount collected by the Revenue after their investigations.

Where someone passes away, it is their Executor who generally must report to the Revenue about the person’s assets and debts, together with any reliefs or exemptions from Inheritance Tax which may apply.

The system is undoubtedly complex, with various hoops to jump through for even seemingly straightforward estates – and this only increases where the person owned a business or farm, had assets abroad, or was making lifetime gifts. With the law on Inheritance Tax filling innumerable books, it is no wonder that families are making even unintentional mistakes!

Even if you want to keep costs down by dealing with things yourself, it can pay dividends to seek a solicitor’s advice on the process – both to make sure that you are not falling into any Inheritance Tax traps and are maximising all the allowances available.

 

For any help with estate administration, Inheritance Tax, or being an Executor or Administrator, please visit our dedicated hub page, or contact one of our specialist team directly.

Contact the team

Company & Industry

Related Insights

Insights

Using family mediation to help you separate

Posted on 18th January 2021 in Family Law

Mediation is a process in which an independent mediator works with a couple to help them reach a mutual agreement. It is a voluntary process, meaning that both parties need to commit to engaging in the process. It is open to either party to leave mediation at any stage.

Posted by

Aimee Aspinall

Chartered Legal Executive
Insights

Inheritance Tax for home-sharing siblings

Posted on 15th January 2021 in Later Life Planning

Last year, a new private members’ bill was introduced to Parliament, calling for there to be a ban on Inheritance Tax being paid by siblings who live together.

Posted by

Rachael Morley

Associate and Solicitor