Calculating the amount of Inheritance Tax (IHT) due on a person’s estate is not an entirely straightforward matter. A little known fact is that sometimes the exact amount of tax payable is open to negotiation.
HM Revenue & Customs (HMRC) has a helpful website on which is published internal guidance to its staff on the charging of IHT. The aim of this guidance is to ensure that the correct (i.e. the full) amount of IHT is collected from each taxpayer. However, this guidance explicitly recognises that there are many situations in which the amount of IHT chargeable cannot be precisely calculated under the law as it stands and that, in such cases, HMRC staff have to be prepared to negotiate a settlement with taxpayers.
At any one time, our team across our four principal offices usually has a number of cases under negotiation with HMRC. Experience has made us adept at handling such matters and our success rate in minimising our clients’ IHT liabilities is considerable.