New Forest Ribbon
New Forest

13/07/2017

HMRC urged to extend executors’ inheritance tax deadline

Royal London is calling on HMRC to change inheritance tax (IHT) rules on larger estates to allow executors more time to pay complex tax bills.

Under current rules, the executor of a will can manage a person’s estate following their death by applying for a ‘grant of representation’ – otherwise known as probate.

The process involves valuing the estate, paying any outstanding debts or taxes and distributing the estate in accordance with the deceased’s wishes.

The deadline for IHT bills on an estate is six months after the person’s death.

However, research from Royal London states the majority of estates can take between six and 12 months to complete as larger properties or shares can be complicated and may need more time to be sold.

Helen Morrissey, personal finance specialist at Royal London, said:

“We are seeing more estates than ever subject to inheritance tax and larger estates can take a long time to wind up.

“Many executors may have no idea they could be responsible for finding the money for a large tax bill before money in the estate is available.”

Responsibilities

Other issues for the executor, such as lost paperwork or inaccurate record keeping, could cause further delays in paying tax bills on time so it is imperative to know your responsibilities.

Any outstanding taxes and debts must be reported and paid to HMRC. You will need your IHT reference number at least three weeks before completing your payment.

Latest Tweets

Businesses have until 8th August to apply for grant funding for innovative projects designed to reduce the costs of deploying carbon capture, usage and storage technology https://bit.ly/3BrWsxm

The 5th and final SEISS grant is now available and can be claimed for the period of May to September 2021. https://bit.ly/2UpkqJf

Let’s Talk

Why not arrange a FREE consultation and find out what we can do for your business.