HMRC is reviewing more inheritance tax (IHT) accounts where it believes tax has been underpaid, warns Eugenia Campbell, private client tax director at RSM
Inheritance tax (IHT) forms can be difficult to navigate with several pitfalls lurking which can trigger a check. Errors can be costly in terms of penalties and late payment interest, so what can families do to avoid areas of risk and protect their inheritance?
Current economic metrics and growing IHT receipts estimated to be £7.6bn in 2023/24 suggest that despite speculation, it might prove too costly for the government to abolish IHT in the upcoming Spring Budget.
HMRC considers various risk factors before initiating a check into IHT accounts. These risks may include apparent omissions, inadequate valuations and incorrect claims for reliefs or exemptions.
