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HMRC’s trusts and estates section has made changes to its inheritance tax (IHT) compliance checks in an effort to streamline the process and encourage collaborative working with taxpayers.
The Revenue aims to send an initial letter within eight to ten weeks of receipt of an account to explain it has been selected for a check. The case will then be allocated to an investigator, the contact point for all subsequent communication.
HMRC’s trusts and estates section has made changes to its inheritance tax (IHT) compliance checks in an effort to streamline the process and encourage collaborative working with taxpayers.
The Revenue aims to send an initial letter within eight to ten weeks of receipt of an account to explain it has been selected for a check. The case will then be allocated to an investigator, the contact point for all subsequent communication.
He or she will consider the taxman’s perspective of risks and contact the taxpayer, usually by telephone, to begin the check – usually between four and six weeks after the initial letter, with the aim of reaching early agreement on a case plan to resolve the risks quickly and within a timeframe acceptable to both parties. It may be possible in some cases to complete the IHT compliance check mainly by telephone.
HMRC expect the new approach will result in financial savings for all parties.
The revamp is explained in the latest edition of the trusts & estates newsletter, which also cover changes in Finance Act 2013 to IHTA 1984 in relation to the treatment of liabilities and elections for non-UK domiciled spouses or civil partners to be treated as domiciled in the UK.
The new measures have led the Revenue to make minor alterations to forms IHT400 Inheritance tax account and IHT419 Debts owed by the deceased. They are available online and from the probate and inheritance tax helpline on 0300 123 1072. The IHT400 guidance notes have also been updated.
The trusts and estates newsletter also includes the following information.
Discounted gift schemes: the tax department has provided further explanation of two points following the publication of Revenue & Customs Brief 22/13 in connection with discounted gift schemes and the ten-year anniversary valuation:
- the removal of gender as a factor in setting life assurance premiums, explained in section two of the brief; and
- the allowance that should be made for purchaser’s costs in valuations.
Performance indicators: the trust and estates section sets out its annual priorities and objectives in contributing towards HMRC’s business plan. The key performance indicators for handling calls, post and complaints in 2013/14 are:
- respond to 80% of post within 15 working days and 95% of post within 40 working days;
- answer 90% of helpline telephone calls;
- deal with 90% of post/telephone calls accurately;
- deal with 80% of complaints within 15 days; and
- keep justifiable complaints below 70% of the total.
