Inheritance tax: HMRC raid record £326MILLION in 2022 - how much do you have to pay?
Investigations can take years to conclude
HM Revenue & Customs (HMRC) has raided £326million from bereaved families after launching inheritance tax investigations.
Cashing in on property prices, the authority has been making a bigger effort to raid money from families underpaying their inheritance bill.
In details uncovered from a Freedom of Information request made by insurer NFU Mutual it reveals the amount raised by HMRC was 28 percent higher in the year up to March 2022 than the year before.
People who have made a mistake are being investigated in the same manner as those who are deliberately hiding information – which can take years to conclude.
The standard inheritance tax rate is 40 percent, and is only charged on the part of your estate that’s above the £325,000 threshold.
The threshold is increased to £500,000 if you give away your home to your children or grandchildren.
With the Prime Minister Rishi Sunak freezing the threshold until 2028, it’s likely to give HMRC a bigger revenue for years to come.
Along with this, tax authority will receive £79million from the Government over the next five years to help recruit more staff in a bid to chase the highest taxpayers.
Of the £326million claimed back from HMRC, the majority came from investigations that began in previous years.
Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, said: “Inheritance tax used to be seen as a wealthy person’s tax, but a mix of booming house prices and threshold freezes mean this is no longer the case.
“Inheritance tax receipts received by HMRC during the financial year 2021/222 were at an all-time high of £6.1billion, with estates over this level facing eye-watering 40 percent tax bills.”
A spokesman for HMRC said: “Our role is to collect the right amount of tax due under UK law. Cases are opened where we identify a risk of tax not being paid.
“We appreciate dealing with inheritance tax can be difficult and we approach all cases with sensitivity. Anyone with concerns or who needs extra support can call our inheritance tax helpline on 0300 123 1072.”
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