HMRC has launched a new online inheritance tax (IHT) guidance tool to support individuals who need help understanding whether they need to pay death duties and of so, which forms they need to complete.
Where the estimated estate value is above the relevant IHT threshold, the tool will direct customers to further information on other reliefs available that could reduce IHT liability. It will also direct customers to guidance on probate. HMRC has emphasised that the tool is not a calculator and should be used as guidance.
Canada Life technical manager Kim Jarvis says: “IHT is by its very nature a complex area of financial planning, but this tool should prove valuable to those who are unfamiliar with the process and the forms requiring completion. Although HMRC has been clear the tool should only be used as guidance, it will helpfully show if the estate will need to pay IHT. The tool is not a calculator and clearly doesn’t replace good financial planning or the role of advice, but it is a welcome development by HMRC.”