Wealth managers have warned there is a \u201cclear risk\u201d that even more families will be hit with fines from next April when pensions become liable for inheritance tax.<\/p>\n
Rachael Griffin, of wealth manager Quilter, said delays in form-filling were \u201cinevitable\u201d because of the complexity of the process.<\/p>\n
She added: \u201cAs more modest estates are caught, there is a greater tendency to try and handle returns without advice.<\/p>\n
\u201cThat creates predictable friction as many executors are navigating this for the first time, running up against a process that is evidence-heavy, deadline-driven and not particularly intuitive. Delays are an almost inevitable outcome, and penalties follow.<\/p>\n
\u201cThere is a clear risk [that the number of penalties] intensifies from April. Pension death benefits<\/a> will move more squarely into the inheritance tax regime, expanding both the number of estates in scope and the complexity of administering them.\u201d<\/p>\n Duncan Mitchell-Innes, of law firm TWM Solicitors, said: \u201cThe basic inheritance tax form (IHT400) has 122 questions, often requiring detailed financial and historical information. In many cases, this must be supplemented by additional schedules \u2013 of which there are more than 30 \u2013 depending on the nature of the estate.\u201d<\/p>\n Families can use ballpark valuations if the estate has not been fully valued after 12 months. If the levy is overpaid, they will be refunded by HMRC.<\/p>\n