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Tax tip-off

29 March 2016 / Julie Butler
Issue: 4543 / Categories: Comment & Analysis

The responsibilities of beneficiaries and executors when dealing with estates and inheritance tax liabilities


  • The Hutchings case highlights the need for full disclosure.
  • A third party was liable to a penalty under FA 2007 Sch 24.
  • The possibility of information being provided to HMRC by other family members.
  • Possible reluctance of family members to make full disclosures of property transfers must be overcome.
  • Executors should fully document their enquiries.

The case of Timothy Clayton Hutchings v HMRC [2015] UK FTT 009 was heard by the First-tier Tribunal in early 2015. It is an interesting and ground-breaking case because it is the first where a third party – a beneficiary rather than the executors – has been punished with a penalty under FA 2007 Sch 24 (‘Penalties for errors’). Although Mr Hutchings realised that as a beneficiary of a lifetime transfer the estate had to...

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