{"id":125784,"date":"2026-09-21T14:15:00","date_gmt":"2026-09-21T13:15:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=125784"},"modified":"2026-09-21T14:10:07","modified_gmt":"2026-09-21T13:10:07","slug":"hmrc-launches-checks-on-uk-households","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/hmrc-launches-checks-on-uk-households\/","title":{"rendered":"HMRC Launches Checks On UK Households Over Possible \u00a3392m Inheritance Tax Shortfall"},"content":{"rendered":"\n

HMRC<\/strong> is examining whether wealthy families may have underpaid almost \u00a3400 million<\/strong> in inheritance tax (IHT)<\/strong>, with potential errors linked to complex estate valuations and incomplete tax returns.<\/p>\n\n\n\n

The suspected shortfall reached up to \u00a3392 million<\/strong> in the year ending March 31, 2026, according to figures from UK law firm TWM Solicitors<\/em>. The amount represents the maximum possible tax gap identified before investigations are completed, rather than confirmed unpaid tax.<\/p>\n\n\n\n

Potential Tax Shortfall Rises As HMRC Reviews Wealthy Estates<\/h2>\n\n\n\n

According to Express<\/a><\/em>, the estimated inheritance tax shortfall has risen by 14%<\/strong> compared with the previous year, when the potential figure stood at \u00a3344 million<\/strong>. The review focuses on estates connected to individuals classified by HMRC as wealthy.<\/p>\n\n\n\n

For these investigations, HMRC<\/strong> <\/a>considers wealthy individuals to include people who earned at least \u00a3200,000<\/strong> in income or held assets worth more than \u00a32 million<\/strong> during any of the previous three years.<\/p>\n\n\n\n

Tax officials can examine whether valuable assets were correctly reported during probate. Items under review may include jewellery<\/strong>, watches<\/strong>, paintings<\/strong>, property valuations and other high-value possessions that could affect the amount of inheritance tax due.<\/p>\n\n\n\n

Families Face Challenges With Complex Inheritance Tax Rules<\/h2>\n\n\n\n

Duncan Mitchell-Innes, Deputy Head of Private Client and Partner at TWM<\/strong>, warned that mistakes can occur when families attempt to manage inheritance tax requirements without specialist support.<\/p>\n\n\n\n

He told IFA Magazine<\/em>: \u201cThe IHT rules can be complicated and, for executors trying to complete the IHT return without professional help, there is scope for misunderstanding or not being aware of the rules, leading to an inadvertent underpayment of IHT.\u201d<\/p>\n\n\n\n

Executors are responsible for completing estate administration after someone dies, including reporting relevant assets and calculating any inheritance tax liability. Errors can result from misunderstandings around exemptions, asset values or reporting requirements.<\/p>\n\n\n\n

\"HMRC
HMRC<\/strong> considers wealthy individuals to include people who earned at least \u00a3200,000<\/strong> in income or held assets worth more than \u00a32 million<\/strong> during any of the previous three years.
\u00a9 Shutterstock<\/figcaption><\/figure>\n\n\n\n

Inheritance Tax Revenues Continue To Increase<\/h2>\n\n\n\n

The potential tax gap comes as inheritance tax receipts continue to generate higher revenues for the UK government.<\/p>\n\n\n\n

The latest official HMRC<\/strong> figures show that inheritance tax generated \u00a33.2 billion<\/strong> between April and July 2026, which was \u00a3100 million higher<\/strong> than the same period a year earlier. June 2026 recorded the highest monthly inheritance tax receipts on record.<\/p>\n\n\n\n

Inheritance tax is generally charged at 40%<\/strong> on the value of an estate above the available tax-free thresholds. The standard nil-rate band<\/strong> remains at \u00a3325,000<\/strong>, a level that has been unchanged since 2009.<\/p>\n\n\n\n

The government has confirmed that this allowance will remain frozen until April 2031<\/strong>, meaning more estates may fall within the scope of inheritance tax as asset values change over time.<\/p>\n\n\n\n

Pension Rules Set For Major Inheritance Tax Change<\/h2>\n\n\n\n

A significant change to inheritance tax treatment is scheduled for April 2027<\/strong>, when most unused pension funds and pension death benefits are expected to become part of an individual\u2019s estate for inheritance tax purposes.<\/p>\n\n\n\n

The change could affect estate planning decisions for families with substantial pension savings. It also adds another layer to the rules that executors and advisers will need to consider when handling future estates.<\/p>\n\n\n\n

HMRC\u2019s current investigations focus on whether existing estates have correctly declared assets and calculated liabilities. The latest official data shows inheritance tax receipts reached \u00a33.2 billion between April and July 2026<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

HMRC is reviewing potential inheritance tax errors involving wealthy estates across the UK. The suspected shortfall could reach hundreds of millions of pounds.<\/p>\n","protected":false},"author":4,"featured_media":111555,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[],"class_list":["post-125784","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-taxation","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/125784","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=125784"}],"version-history":[{"count":2,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/125784\/revisions"}],"predecessor-version":[{"id":125787,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/125784\/revisions\/125787"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/111555"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=125784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=125784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=125784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}