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Inheritance Tax-Late Payment

HMRC's attitude to late payment and to interest

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My client died 13 years ago. Out of the blue, March 2020, I received a letter from Scottish Widows saying that they have only recently learned of the death and enclosing a claim form for the investment that they hold. There had been two exectutors but the other died last year which I only discovered through one of the beneficiaries. She advised me that his wife is not in good health. In an attempt to avoid troubling the wife I tried to obtain a copy of the death certificate from National Records but to no avail. The widow has been most helpful and provided a certificate which has been registered and returned by Scottish Widows. There is around £6,500 to come from the investment. From a document that SW sent it is possble that there may be another £4,500 available. I am trying to clarify. Clearly there is Inheritance Tax of between £2,600 and £4,400 due and accruing interest. Perhaps a forlorn hope but are we beyond statutory limits for HMRC action and collection of the tax? There has been no effort to conceal the funds or to avoid the tax. Clearly it will be better to approach HMRC and seek their input. Any thought on the matter and on the approach to take please?

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By Anonymous.
25th Jun 2020 15:43

Is the distinction deliberate v careless mistake for the 12 v 20 year window?

Speaking as a taxpayer, I hope that the tax is collected!

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By frankfx
25th Jun 2020 20:10

What were the investments worth at date of death,?
That may help your considerations.
Any tax implications on growth since then?
SW may have been part of the problem.

Thanks (1)
26th Jun 2020 13:55

You can get copy will and probate from the Probate Office online.

You need to set up an account; responses are usually pretty prompt, but not sure about during COVID!

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By GamekeeperTurnedPoacher
26th Jun 2020 16:53

Thank you! I had to do that and while the process was straightforward Covid meant it took several weeks for the documents to arrive.

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