You might have to pay inheritance tax while still alive

11 August 2014

smily death The Government have been messing around with inheritance tax and one of the things that is stirring up interest is that those who who try to reduce their inheritance tax bill might have to pay the levy up front.

Thanks to people using complex schemes to cut what they pay in taxes after their death, HM Revenue & Customs want those suspected of avoiding inheritance duty to pay it in full up front.

This is the latest idea the Government have had with the problem of tax avoidance.


Basically, the HMRC thinks that people who are suspected of using tax avoidance schemes should be liable to an 'accelerated payment' of inheritance tax during their lifetime. If they're innocent, then they'll get the money back after investigation.

A spokesman said that this only affects "very small numbers" of rich people, but you can imagine that the wealthy have the kind of accountants clever enough to get around any new rules, and added: "We are seeking views on tackling inheritance tax avoidance schemes. This is an ongoing consultation and no final decisions have yet been taken."

"The proposals in the consultation paper will only affect a small minority of wealthy individuals who actively seek to avoid Inheritance Tax. Couples would still be able to leave up to £650,000 tax free to benefit their children or grandchildren."


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