Inheritance Tax and Trusts Investigations
Inheritance Tax (IHT) and trusts are complex areas of the UK tax system. HMRC closely scrutinises tax returns involving estates and trusts, as these often involve large sums of money and opportunities for tax avoidance — whether deliberate or unintentional. If you’ve been contacted by HMRC about an inheritance tax return or a trust arrangement, the stakes can be high.
Why HMRC Investigates Inheritance Tax and Trusts
HMRC investigates estates and trusts to ensure that the right amount of tax has been paid. Common triggers for enquiries include:
- Undervaluing property or assets on an inheritance tax return.
- Failure to disclose lifetime gifts or transfers of wealth.
- Complex trust arrangements that HMRC suspects are being used to avoid tax.
- Discrepancies between probate values and later sale prices.
- Information received from third parties or cross-checks against HM Land Registry and financial institutions.
These investigations can be highly intrusive, requiring detailed records, professional valuations, and explanations of past financial decisions.
What’s at Risk in an IHT or Trust Investigation The consequences of an HMRC investigation in this area can be serious:
- Recalculated inheritance tax bills, often running into tens or hundreds of thousands of pounds.
- Interest and penalties on underpaid tax.
- Challenges to the validity of trust arrangements, leading to increased tax liabilities.
- Delays in administering an estate, which can cause stress for grieving families.
- In some cases, allegations of deliberate fraud and potential legal action.
Even genuine mistakes can result in costly penalties if not managed carefully.
How We Help
At Tax Investigation Helpline, we have the expertise to guide you through inheritance tax and trust enquiries. We provide:
- Immediate clarity: We explain HMRC’s correspondence in plain language and outline what you need to do next.
- Representation: We act on your behalf in all dealings with HMRC, protecting you from unnecessary stress and risk.
- Valuation support: We work with trusted valuers to provide evidence for property, shares, and other assets.
- Detailed review of trust arrangements: We analyse the trust structure and ensure it is defended properly against HMRC challenge.
- Negotiation: Where additional tax is due, we work to reduce penalties and agree affordable solutions.
Our aim is always to protect family assets, minimise liabilities, and resolve matters as quickly as possible.
Common Issues We See From our experience, HMRC often focuses on:
- Properties reported at below-market value.
- Gifts made within seven years of death not declared on IHT returns.
- Complex or offshore trusts.
- Undisclosed bank accounts, shares, or investments.
- Errors in calculating exemptions and reliefs (such as Business Property Relief or Agricultural Relief).
By anticipating HMRC’s arguments, we can build the strongest possible defence.
Don’t Face HMRC Alone Inheritance Tax and trust investigations often come at an already stressful time, when families are dealing with grief or complex financial responsibilities. Facing HMRC without expert help can prolong matters and increase liabilities unnecessarily.
We’ve guided executors, trustees, and beneficiaries through challenging enquiries, ensuring that HMRC is held to account and that matters are resolved fairly.
Contact Us Today
If HMRC has contacted you about an inheritance tax or trust matter, don’t delay. The sooner you act, the more options you have to protect your position. Call Tax Investigation Helpline today for confidential, expert support. We’ll stand by you every step of the way.
