HMRC Gain From IHT Challenges

December 17, 2012

HMRC Gain From IHT Challenges

In 2011, HM Revenue and Customs (HMRC) challenged more than 10,000 Inheritance Tax (IHT) returns, according to accountants UHY Hacker Young. Each challenge yielded an average increase in IHT payable of £27,000.

In 2010, there were 493,000 deaths recorded in England and Wales. Given that many estates are of a much lower value than the current IHT threshold of £325,000, the implication is that the likelihood of a challenge is significant if HMRC suspect valuations of assets are incorrect or that not all estate assets are included.