How powerful is the Taxman?

It’s often claimed that tax inspectors have more power than the police. Perhaps we’ll leave that debate to the civil liberty lobbyists. But it is a fact that Her Majesty’s Revenue & Customs (HMRC) officials leave no stone unturned in their pursuit of what is rightfully theirs – which, in effect, means ours.

Some people may think that the taxman is off their backs once the grant of representation, commonly known as probate, has been issued. However, HMRC can review the amount of inheritance tax paid if it believes an incorrect valuation was made of the deceased’s property.

And personal representatives can land themselves in a spot of bother if they do not inform HMRC of newly-discovered assets or any other inaccuracies after probate has been granted.

It’s not all one-sided, though. Tax calculations can be appealed at any time. If property is sold at a loss within four years of death or shares are sold at a loss within one year, inheritance tax relief can be claimed. HMRC will write to you when their enquiries are complete.

For expert help with the probate process, contact Heritage Will Writing on 02380 879243.