Tax on share dividends

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shares in her mother’s name

From what you have previously said, the daughter bought the shares but the name on the register is her mother's. You have also said that there is no declaration of trust.

It would seem therefore that legally the shares belong to the mother and indeed in the event of her death would fall into her estate.

The daughter would be regarded as having made a gift to her mother of the money to buy the shares? This seems to have been more than seven years ago so from the point of view of the daughter's own estate is now an exempt transfer?

The mother is passing the dividend income she receives to her daughter- she is therefore making gifts which may have IHT implications for mother's estate. http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm

The daughter owns shares in her own name and she is a higher rate taxpayer - she should have advised HMRC that she was liable for more tax than she was actually paying? http://www.hmrc.gov.uk/taxon/uk.htm

If she knows all the relevant figures she can set them out in a letter to HMRC and await advice as to how to proceed?