HM Revenue and Customs (HMRC) has intensified its scrutiny of inheritance tax declarations, launching investigations where underpayments are suspected. According to GB News, officials are examining financial records more closely to ensure estates have been accurately reported and taxed. The move comes amid concerns that some assets may be going undeclared, resulting in lower tax bills than required under UK law. Families administering estates are now being urged to ensure all financial details are fully disclosed.
Bank Statements And Undisclosed Assets Under Closer Examination
Tax specialists say HMRC is increasingly using detailed financial analysis to identify inconsistencies in estate reporting. This includes reviewing bank statements, investment portfolios and records of overseas transactions to detect assets that may not have been declared during probate. In some cases, patterns of income or large transfers can indicate the existence of property holdings, share portfolios or foreign currency accounts that were not initially disclosed.
Sean McCann, chartered financial planner at NFU Mutual, stated: “This can include analysing bank statements to identify income which may suggest the existence of undisclosed assets, such as investments or property or significant foreign currency transactions.”
Such scrutiny can extend over several years of financial activity prior to death, particularly where there are signs of substantial gifts or complex asset structures. Executors are legally responsible for submitting accurate valuations of an estate’s total worth, including property, savings, business interests and valuable possessions. Errors, whether deliberate or accidental, can trigger further inquiries, financial penalties or additional tax demands. Specialists note that even straightforward estates can face questions if documentation is incomplete or valuations appear inconsistent with market data. The growing use of digital records and cross-border data sharing has strengthened HMRC’s ability to compare information across financial institutions. As a result, professionals are advising families to seek thorough valuations and maintain clear records throughout the probate process.
HMRC Defends Investigations As Fairness Measure
HMRC maintains that the vast majority of estates are handled correctly and that investigations are opened only where there is reason for concern. According to GB News, the department stresses that enforcement activity is aimed at preserving fairness within the tax system rather than penalising compliant families. Officials argue that inheritance tax, which applies to estates above the £325,000 nil-rate band in most cases, relies on accurate self-reporting to function properly.
An HMRC spokesman said:
“Most people pay the correct amount of inheritance tax. In cases where it is suspected someone has not, investigations can be opened to address issues and ensure the system remains fair.”
The spokesperson added that compliance checks form a routine part of tax administration and are not automatically an indication of wrongdoing. Even so, being subject to an investigation can delay the final settlement of an estate and extend the probate process. Professional advisers note that early cooperation and transparent disclosure can help resolve inquiries more quickly. With property prices and asset values rising in many regions, more estates are approaching or exceeding inheritance tax thresholds, bringing a larger number of families into contact with the system. As scrutiny increases, accurate reporting and comprehensive documentation are becoming central to avoiding costly disputes after a loved one’s death.
Growing Awareness Among Executors And Families
The heightened focus on underpayments is prompting greater awareness among executors about their legal responsibilities. Administering an estate now requires careful coordination between solicitors, accountants and financial institutions to ensure every asset is properly identified and valued. Families dealing with complex portfolios, overseas holdings or lifetime gifts face particular administrative pressure. Errors can arise from outdated valuations, missing paperwork or misunderstandings about exemptions and reliefs.
Professionals say proactive planning during a person’s lifetime can reduce the likelihood of complications later on. Clear record-keeping, transparent communication and up-to-date wills help minimise uncertainty when estates are assessed. The latest investigations reflect a broader trend of closer compliance monitoring rather than a sudden policy shift. For many households, the message is straightforward: accuracy and transparency are vital when calculating inheritance tax liabilities. As HMRC continues to refine its analytical tools, estates that once passed without detailed examination may now face more rigorous review.
