Revenue targets deathbed gifts

Revenue & Customs has launched an inheritance tax clampdown, targeting taxpayers who have made gifts before death and scrapping the 60 day limit, according to accountancy firm Dixon Wilson. Gifts made by taxpayers within seven days of their deaths are considered to be within their estates for IHT purposes in order to prevent people trying to dodge the tax by giving away assets on their deathbeds, reports ifaonline. However, in a 'fairly significant departure' from former rules, the Revenue will now compare information on IHT returns with information provided to the Revenue during the lifetime of the deceased, plus information from other sources. This will ignore the Revenue's previous commitment to only challenge estates within 60 days of giving clearance they are below the IHT threshold, says Dixon Wilson. This means it could challenge estates years after taxpayers' deaths. Helen Clark, partner at Dixon Wilson, said: 'The purpose of the 60-day limit is to give taxpayers peace of mind, but this new compliance campaign sweeps all that away.'
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