HMRC inheritance tax investigation hunting down thousands of people

hmrc inheritance tax investigation hunting down thousands of people

Inheritance tax is owed when someone leaves more than £325,000 worth of assets to someone in their will

His Majesty’s Revenue and Customs (HMRC) is searching for 2,000 families every six months, new figures show, who haven’t paid their inheritance tax. Between April and November last year, a total of 2,029 investigations were opened, according to financial planning firm NFU Mutual’s data.

Inheritance tax, paid by descendants on money left when someone dies, is usually charged at a rate of around 40%. But that’s only if the value of the money and assets – which includes property and possessions – is more than £325,000.

Usually, those inheriting have six months from when the person died to pay the inheritance tax. You will be charged interest if you don’t pay by the due date, reports Birmingham Live.

And you could also be tracked down. The government has “substantial powers” to find people who haven’t paid, reminds chartered financial planner Sean McCann from NFU.

He said: “HMRC has substantial investigation powers if it suspects inheritance tax has been underpaid through error, omission or by undervaluing assets. It will check other information sources to build up a picture of the deceased and their financial affairs — including bank statements or looking at income which may suggest the existence of undisclosed assets such as investments, property or significant foreign currency transactions.”

You can pay from your own bank account or a joint account with the deceased. Make an online payment by approving through your bank account or a bank transfer.

You can also pay using telephone banking, at your bank or building society, or by cheque through the post. You’ll need to get a payment reference number before you can pay your Inheritance Tax bill, the government goes on to explain online.

HMRC do not send receipts for each payment you make. They’ll write to tell you when you’ve paid all the Inheritance Tax and interest you owe. If you’ve paid through your own bank or building society, check your statement to confirm the payment has left your account.

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