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Compliance & excepted estates
Compliance & excepted estates
HMRC are piloting a change in the way that they monitor of excepted estates
and tackle non-compliance. Until now, in addition to a random selection of
estates, they have endeavoured to always contact the taxpayer within the
35/60 day statutory clearance period when they have any questions relating
to these grants. Within this brief window it is usually only property
under-valuations on estates declared near to the value of the IHT nil rate
band that have been identified.
HMRC are now comparing the data provided on death with data the deceased
provided during their lifetime and information from other sources. HMRC
will be focussing their attention on estates where all the information
suggests that the estate does not meet the criteria to be an excepted
estate. If an estate does not meet those criteria the statutory clearance
will not apply (as the estate was not within the excepted estate
regulations at the outset) and so HMRC may write to the taxpayer some time
after the 35/60 day period has expired. HMRC will only be pursuing those
cases where their evidence strongly suggests that the estate was never an
excepted estate. If HMRC uncover systematic failings in the processes
agents go through in preparing an application for an excepted estate grant,
they may wish to visit you to discuss where improvements might be made.
HMRC recently met with a number of professional bodies to explain this new
approach and discuss it with them.
David Key.
News Archive
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