HMRC opened 3 574 investigations into inheritance tax in the year to 31 March 2021 netting an additional £254m in revenue according to information obtained by Pinsent Masons.
The firm adds that rising property values have led to growing numbers of people coming within the scope for inheritance tax. This is largely due to the nil rate band remaining at £325 000 since 2009. Further despite the complexity of the regime more people are choosing to take care of legal issues surrounding inheritance themselves to save money. This has significantly increased the scope for error making it more likely that HMRC will launch an investigation.
Pinsent Masons says there are particular ‘red flags’ that will prompt HMRC to look more closely into a deceased person’s estate. These can include but are not limited to:
- if an estate happens to conveniently fall just...
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