The need for an overhaul of the Inheritance Tax Forms
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Each year in the UK there are approximately 500,000 deaths and approximately half of those estates must file an Inhertiance Tax Return, but only 25,000 would have to pay Inheritance Tax.
The process of filing Inheritance Tax returns can be a slow and painful exercise for bereaved families. On average filing and receiving the Inheritnace tax retun takes between 6 and 8 weeks.
The Office for Tax Simplification (OTS) has recently published an intial report advising HMRC that the current Inheritance Tax forms should be overhauled to allow them to be filed online. HMRC should also consider sending the IHT receipt to HMCTS electronically.
Having a streamline filing system will reduce the pressure on HMRC and would allow bereaved families to expedite the winding up of the estate.
We will have to wait until the full report from the OTS is produced and the Government decides how to implement it.(if they do!).
Álvaro Aznar Azcárate
Solicitor and Spanish Abogado