The response to a Freedom of Information (FoI) request has revealed that as many as one in four estates that are liable for Inheritance Tax 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.
The figures came within weeks of the Office of Tax Simplification (OTS) unveiling proposals to simplify IHT, which is widely regarded as overly complicated and difficult to understand.
At Macalvins, we understand that when you’ve worked hard all your life, you will, understandably, want the wealth that you’ve generated to benefit the people that are important to you when you are no longer here.
We provide expert estate and inheritance tax planning services to ensure that your assets are passed on as tax efficiently as possible, so that your beneficiaries are not left with any avoidable tax bills.
We also support individuals by ensuring that all their tax affairs are in order so that they are able to robustly defend themselves in the event of a tax investigation by HMRC.
For help and advice regarding maximising all available tax reliefs and, in particular, how to properly reduce the burden of inheritance tax, please contact us.