Delay in HMRC processing IHT

twosheds_2

As the executor I completed the IHT400 and sent it recorded delivery on 16 June and it was signed for on the 17th.

Having not heard a thing from HMRC, I contacted them in early August only to be told that had not looked at my case and didn't envisage doing so for two to three months.No explanation for the delay was offered, but it was suggested that should if I made a payment towards the Inheritance Tax I had calculated was due, it would "speed up the process".

I paid a significant amount of what I had assessed was due from the deceased's
estate via form IHT 423 directly to HMRC.
Again having had no response I rang them yesterday and after the customary lengthy delay on hold, was told that although they had received the money the case had still not been looked at but was now unlikely to be dealt with from two to five months time.


'Moving to a new system' and 'Staff shortages' were the reasons given but no explanation was offered as to why my case had not been expedited as promised.


With it being six month since the deceased's death next month, I have the added delight of having to pay interest on the inheritance tax due even though it is HMRC's
fault there is a delay in the first place.

Crabapple

Whatever the reasons they are most definitely taking forever to look at cases now and it is a total pain for people trying to get things sorted.

However, their delays in processing a return don't affect when you can pay the tax or when you should. Get the full sum you have calculated as due paid right away.

Yorkshireman99

Crabapple wrote: »

Whatever the reasons they are most definitely taking forever to look at cases now and it is a total pain for people trying to get things sorted.

However, their delays in processing a return don't affect when you can pay the tax or when you should. Get the full sum you have calculated as due paid right away.

Also lodge a formal written complaint via your MP. Don't let them off the hook.

eve1978

When you say they haven't looked at it, does that mean you/your probate office have not received the stamped iht421 back and you are not able to get the grant yet?

I am about to pay my hit bill and send in the forms this week, and require probate expeditiously due sale of an estate property. I have already explained this to the IHT staff but I'm not hopeful.

twosheds_2

Thanks for the replies

The tax that remains payable is tied up in property so can't be accessed until sold , which I can't complete until probate is granted.

I have contacted MP amongst others, but thanks for the tip

They have confirmed verbally that they received the IHT 400, and all of the associated IHT schedules, but have not done a thing with them is what I was told

Yorkshireman99

twosheds wrote: »

Thanks for the replies

The tax that remains payable is tied up in property so can't be accessed until sold , which I can't complete until probate is granted.

I have contacted MP amongst others, but thanks for the tip

They have confirmed verbally that they received the IHT 400, and all of the associated IHT schedules, but have not done a thing with them is what I was told

The fact you have no sold the house does not stop the liability to pay. The normal way to deal with this is for the executors to borrow the money short term to pay the tax.