Inheritance tax (IHT) investigations could hit thousands more bereaved families as HM Revenue & Customs tightens its grip on estates.<\/p>\n
The tax authority has launched nearly 10,000 IHT probes in just three years, with 2,606 of those still unresolved, according to data released under Freedom of Information rules.<\/p>\n
Official figures show that HMRC<\/a> opened 3,961 inheritance tax investigations in the year to April 5 \u2014 a sharp rise of 31% compared with the previous 12 months.<\/p>\n The clampdown comes amid soaring tax receipts. Inheritance tax brought in a record \u00a38.2 billion last year \u2014 the fourth consecutive annual high \u2014 as rising house prices and frozen thresholds pushed more families above the limit.<\/p>\n Sean McCann of NFU Mutual, who obtained the figures, warned that HMRC<\/a> is leaving “no stone unturned”.<\/p>\n He told the Telegraph<\/a>: “Where there is a suspicion that inheritance tax has been underpaid through error, omission, or undervaluing assets, HMRC<\/a> has substantial investigatory powers and will check a range of sources to build a picture of the deceased individual\u2019s financial affairs.<\/p>\n \u201cHMRC<\/a> leaves no stone unturned in these investigations. The interest rate<\/a> you pay on overdue inheritance tax stands at 8.5%, which is the highest rate for 18 years, and can add a significant amount to the bill. This can compound what for many is already a challenging and distressing situation.\u201d<\/p>\n Figures show that HMRC<\/a> launched 3,028 probes in 2024, only slightly below the 3,163 cases it opened the previous year. Between April and August alone, compliance checks yielded over \u00a3105 million in extra inheritance tax, largely driven by disputes over asset valuations, according to advisers at Evelyn Partners.<\/p>\n Experts say the increased scrutiny is adding to the burden on families already dealing with grief and complex paperwork.<\/p>\n The pressure is expected to mount further after Rachel Reeves\u2019 Autumn Budget announcement that unspent private pensions will be counted towards a person\u2019s taxable estate from 2027. This change, say analysts at Rathbones, will result in nearly a 25% increase in estates liable for IHT.<\/p>\n