by Giacomo Francioni.
The Institute of Chartered Accountants in England and Wales (ICAEW) commented the news according to which HMRC opened 5,537 inheritance tax (IHT) investigations in the 2018-2019 tax year.
This 3.4 per cent increase on the previous tax year has meant that almost one in four (23 per cent) of the 22,000 taxable estates, are being investigated.
Since the introduction of the residence nil rate band in April 2017 (currently at GBP 125,000), the number of HMRC investigations has increased by 7.8 per cent.
Receipts from IHT hit a record high of GBP 5.2 Billion last year. The complexity of IHT has called for a review by The Office for Tax Simplification (OTS), initiated by the previous chancellor, Philip Hammond.
These numbers just confirms our general advice to carefully consider the right choices in terms of estate planning. Being IHT such a complex matter in the UK, any wrongdoings can be carefully scrutinized and heavily penalised by HMRC.
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