HMRC continue to ramp up investigations into Inheritance Tax (IHT) as they look to boost revenue from compliance activities within the field.
Last year HMRC recovered £5.2billion worth of Inheritance Tax, a £400 million increase from the previous year – and this looks set to continue, with a quarter of liable estates targeted by HMRC in the 2018/2019 tax year.
Investigations are often costly and time-consuming, but HMRC show no sign of slowing down. As the value of assets rise – residential properties, for example – the amount of IHT at stake increases, incentivising HMRC to pursue their investigations more than ever.
Further to this, IHT is a notoriously complicated tax, and complex legislation means some IHT taxpayers unintentionally pay an incorrect amount of tax, making them an easy target for HMRC investigations.
In recent months there have been calls to simplify the process, with some claiming IHT is too complex to administer and rates are inconsistent and there is a need to implement a more coherent and transparent structure, but for now the existing legislation must be adhered to and with the chance of an investigation more likely than ever, it is crucial that you seek appropriate advice to ensure your tax affairs are in order.
That’s where we come in. Our dedicated tax team here at Smith Cooper specialise in IHT planning, and are on hand to provide professional, reliable and realistic tax advice to a range of clients, particularly those with diverse estates and unique requirements.
Whether you need to know how IHT is calculated, what reliefs are available, how to mitigate the chance of an IHT investigation, or even when IHT is due, please get in touch today.