Inheritance Tax Confusion

[harrythebastard]

There was mention last year of inheritance tax reform incoming, but that was before all this kerfuffle.
Which has yet to be paid for, so that might have gone up the pictures already.
A shame as it probably would have come down from 40% (above the threshold) to between 10% and 20%.
It is a nice little earner for HMG, doubling from £2.2 billion in year 2000 and was £5.13 billion for 2019/2020.
The Chancellor was also talking about capital gains tax reform last November but again that hasn't been mentioned since.

 

[Fiona_TG]

There was mention last year of inheritance tax reform incoming, but that was before all this kerfuffle.
Which has yet to be paid for, so that might have gone up the pictures already.
A shame as it probably would have come down from 40% (above the threshold) to between 10% and 20%.
It is a nice little earner for HMG, doubling from £2.2 billion in year 2000 and was £5.13 billion for 2019/2020.
The Chancellor was also talking about capital gains tax reform last November but again that hasn't been mentioned since.

Between 10-20% might be palatable enough for people to more readily accept. At 40% I imagine that many will do what they can (legal and illegal) to wriggle out of what they can.

I am not expecting the rate to drop for the foreseeable future but wonder if it did HMRC might collect more and have an easier time getting what they are due.

 

[Stabwedge]

I suppose I should started with the caveat that I’m in NI. There are slight differences in the probate system here.

@harrythebastard I was thinking about this this morning. Any inheritance tax due must be paid within six months of the date of death or interest will be applied. Either you have none to pay or your solicitor has paid it or your account is accruing interest. I would be knocking the solicitor’s door.

Or you’ve already paid it in which case ignore this!

 

[whiffler]

OP - give it to me, I'll see your daughter pays not a penny.

 

[harrythebastard]

I suppose I should started with the caveat that I’m in NI. There are slight differences in the probate system here.

@harrythebastard I was thinking about this this morning. Any inheritance tax due must be paid within six months of the date of death or interest will be applied. Either you have none to pay or your solicitor has paid it or your account is accruing interest. I would be knocking the solicitor’s door.

Or you’ve already paid it in which case ignore this!

No the system in England and Wales is bollocksed, properly bollocksed.
Like a lot of things in the courts system it has been tinkered with, streamlined and centralised then allocated out.
We have actually paid the first instalment and have 10 years to pay the rest, plus interest.
Our problem involves the valuation of investments which is taken to be at the date of death, both UK assets and some abroad.
That is why I never for one minute thought to take this on myself, plus the stress of getting funds released to a non-solicitors client account sends shivers down my spine.
A Nigerian's fantasy!
This Covid kerfuffle has really elongated the process, from HMRC and Court staff self-isolating at home, to everything official requiring a signature being done by snail mail.
Living abroad in a lockdown has several good points, but not in this respect as I can't just pop home and sort it all out in person.
A lot of things around probate and HMRC can only be done online (by an approved account holder) and a brief has direct access to doing just that.
They have you by the bolleaux really, 40% IHT then another 28% CGT for then selling the property.
Marvellous system isn't it?

 

[Stabwedge]

No the system in England and Wales is bollocksed, properly bollocksed.
Like a lot of things in the courts system it has been tinkered with, streamlined and centralised then allocated out.
We have actually paid the first instalment and have 10 years to pay the rest, plus interest.
Our problem involves the valuation of investments which is taken to be at the date of death, both UK assets and some abroad.
That is why I never for one minute thought to take this on myself, plus the stress of getting funds released to a non-solicitors client account sends shivers down my spine.
A Nigerian's fantasy!
This Covid kerfuffle has really elongated the process, from HMRC and Court staff self-isolating at home, to everything official requiring a signature being done by snail mail.
Living abroad in a lockdown has several good points, but not in this respect as I can't just pop home and sort it all out in person.
A lot of things around probate and HMRC can only be done online (by an approved account holder) and a brief has direct access to doing just that.
They have you by the bolleaux really, 40% IHT then another 28% CGT for then selling the property.
Marvellous system isn't it?

Jebus, mate! Sounds like a nightmare. My parents didn’t have investments (other than NS&I), just the issue with the house and loads of bank accounts.

For probate here I had to send in the stamped IHT result sheet and an application form. They sent out a Statement of Truth for me to sign and return then an appointment to say, face to face, that all the forms are correct and to initial everything. Certificate was sent out for me to send to the bank. Job jobbed.

When it comes to selling the house I shouldn’t have CGT to pay because current values are close to the values of when I was gifted it.

It sounds like I got off light and you are in the middle of a perfect storm of bureaucracy. Good luck.