HM Revenue and Customs (HMRC) opened 3,028 Inheritance Tax (IHT) investigations in the 2023-2024 tax year, recovering £285 million. This marks a significant decrease from the 5,537 investigations conducted in the 2018-2019 tax year, indicating a 45% reduction over five years. However, despite fewer investigations, the amount recovered per investigation has increased, suggesting that HMRC is taking a more targeted and effective enforcement approach. While the proportion of estates subject to IHT investigations has declined, the complexity of the tax continues to raise concerns. Many still argue that the Inheritance Tax is wrong, particularly as families navigating estate administration may not fully understand the risks of making costly mistakes

Following a summer of political change and a new Labour Government, the Autumn Statement by the UK’s first female Chancellor, Rachel Reeves, brought forward long-anticipated updates to taxes, minimum wage and business reliefs.

The Residence Nil-Rate Band (RNRB) was introduced as part of a broader effort by the UK government to alleviate the impact of Inheritance Tax (IHT) on middle-class families, particularly those whose primary asset was the family home. It was first announced in the 2015 Summer Budget by then-Chancellor, George Osborne. The government recognized that rising property prices were pushing more estates over the IHT threshold, and many families were being forced to pay large tax bills on modest estates, especially when passing down family homes to children or grandchildren.

If you missed our social media gifting series from June and July,we've consolidated all our posts and are taking the opportunity to delve deeper into the nuances of Inheritance Tax (IHT) and gifting.

Inheritance Tax (IHT) is a significant concern for many families in the UK. With frozen thresholds and increasing property values, more estates are subject to this tax. This blog explores the essentials of IHT and offers insights into mitigating its impact. While we are experts in estate administration, we do not provide financial advice. Our goal is to assist you with the probate process and estate administration.

In certain circumstances, HMRC will allow a Personal Representative to postpone payment of all or part of the tax and interest due on delivery of an account. This is referred to as a Grant on credit.

When estate planning or dealing with the estate of someone who has died, you may have to handle Inheritance Tax (IHT).

Probate refers to the process of applying for a Grant of Probate(when there is a Will) or Letters of Administration (when there is no Will), which are legal documents that the person dealing with the estate may be required to obtain. If required, the Grant of Representation (the umbrella term for both documents) gives this individual the legal right to proceed with estate administration, which is the entire process of dealing with the assets and liabilities of someone who has died and then distributing their estate to the beneficiaries.

This blog post explores how Inheritance Tax works and which other taxes HMRC applies to a deceased person's estate.