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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.
More information from the latest edition of the HMRC trusts & states newsletter
New IHT forms for Scottish estates have been published
The August edition of the HMRC trusts and estates newsletter has been published:
Inheritance tax treatment of compensation payments
HMRC Trusts and Estates have confirmed the treatment of compensation payments for inheritance tax purposes on the basis it can cause some difficulties for taxpayers and their agents, especially when compensation is received after the date of death.
The inheritance tax (IHT) exempt amount a UK-domiciled individual can transfer to a non-domiciled spouse or civil partner is to be increased.
There is currently a lifetime limit of £55,000 on the value of the assets that can be transferred free of IHT when the spouse or civil partner to whom the assets are transferred does not have a UK domicile.
New rules to be introduced in Finance Bill 2013 will raise the cap to the level of the prevailing nil-rate band.
Taxman reponds to internet speculation
