Has any Inheritance Tax been overpaid?

Often you need to pay inheritance tax (IHT) when someone dies. If the estate you are dealing with is at a level where you have to pay IHT you have to work out the amount due and pay it before you can get probate, and start collecting in and distributing the assets.

Frequently assets get sold later for more, or less than you estimated they were worth when you completed the tax returns. So you may have to pay more IHT, or try to recover an overpayment.

This is handled by the Capital Taxes Office (CTO) – part of HMRC. Unfortunately they are very understaffed. We have cases where the forms have been sent to the CTO months ago and we have heard nothing – including one where we have told the CTO we have more tax to pay.

This is a great nuisance – we chase, and chase – but nothing happens. The failure to respond means that we can’t finish winding up the estate, the poor executors are left with unfinished business and the beneficiaries have to wait to receive what they are due.