New figures show that a quarter of estates paying Inheritance Tax (IHT) are investigated by HMRC

Posted on Thursday August 8, 2019

Jeffrey Cohen

The response to a Freedom of Information (FoI) request has revealed that as many as one in four estates that are liable for IHT are investigated each year.

In 2018-19, more than 5,500 investigations were launched by HMRC into the approximately 22,000 estates that had to pay the tax.

Despite the introduction of the Residence Nil Rate Band (RNRB) effectively increasing the IHT threshold when a main residence is left to a direct descendent, the number of investigations has increased by 7.8 per cent since 2017.

This highlights the importance of seeking appropriate legal advice when dealing with a probate application and also during Wills and succession planning.

The figures come in the same month that the Office of Tax Simplification (OTS) unveiled proposals to simplify IHT, which is widely regarded as overly complicated and difficult to understand.

Mackrell. Turner Garrett specialises in helping clients with probate applications and IHT. To find out more please contact Jeffrey Cohen.

Link: One in four estates that pay inheritance tax investigated by HMRC