Recent reports indicate a significant rise in HMRC’s inheritance tax (IHT) investigations. These enquiries clawed back an additional £246 million in unpaid tax from bereaved families.
Why the Increase?
HMRC is now using powerful tools including AI to identify errors or inconsistencies in IHT returns. Common triggers include:
- undervalued property
- failure to declare personal items such as jewellery or furniture
- unreported gifts
- overlooked asset
As tax rules become more complex and thresholds remain frozen at £325,000 since 2009, more estates (even those previously considered modest) are falling into the IHT net. Rising house prices mean families may face unexpected liabilities.
What This Means for You
HMRC’s approach is becoming more forensic, and many families only discover issues after a loved one has died, when it’s too late to make changes. Errors can lead to lengthy investigations, penalties, and emotional strain at an already difficult time.
How Proper Planning Helps
Thoughtful estate planning can:
- ensure assets are valued correctly
- reduce the risk of HMRC challenges
- make use of available reliefs
- give clarity on lifetime gifts
- protect your family from avoidable costs and delays
We’re Here to Support You
Whether you are reviewing your Will, considering gifting, or simply want clarity on how the rules apply to your estate, professional advice is essential.
If you’d like to discuss how to prepare effectively and protect your loved ones from future complications, our team is ready to help.