Three areas UK taxman is ramping up IHT probes
HMRC is treating inheritance tax as an increasingly lucrative source of income. HM Revenue and Customs increased investigations into inheritance tax (IHT) by 5% in the past 12 months, according to accountants UHY Hacker Young.
There were 5,400 investigations into returns launched by HMRC in 2017/18, up from 5,100 the previous year.
Rising asset prices, such as property, means the amount of IHT at stake can be very substantial.
If an investigation finds that IHT has been underpaid, the estate may have to pay all of the tax owed plus a penalty, which could be up to 100% of the tax at stake in the estate. Please link to International Adviser to read the full article by Will Grahame-Clarke.