Inheritance Tax – firmly in HMRC sights

New statistics published by HMRC today show that the inheritance tax (IHT) gap has grown to £600 million in 2016/17, rising 50% from £400 million five years ago.

This gap is likely to be a reflection of the growth in the amount of IHT owed.

Despite netting a record £5.3 billion in inheritance tax last year, the taxman believes he is owed £600 million more.

Commentators are fairly united in the view that if HMRC wants to close the tax gap, it is crucial that IHT rules are simplified so that fewer errors are made and IHT is collected correctly.

At the moment we have asset-rich baby-boomers, asset-poor millennials and a ticking tax bomb. The Office of Tax Simplification is conducting a full review of IHT – with a radical re-think not impossible.

To discuss this in further detail please contact Glen Callow on 0121 711 6353