IHT35 - Do you get a letters back? Overpayment?

IreneMot

Hello, 

I sent off a IHT35 because we sold the shares at a loss. Now after a couple of months HMRC has refunded us. The problem is that they have refunded us a lot more than they should have done (14x more). The money they have given us back is about 80% of the inheritance tax we paid!

The Inheritance tax we paid was paid correctly. 

I know I can just ring, but can't stay on the phone for 1h at this moment. 

Any idea what has happened here? 
Does HMRC send out letters to show the working out? 

SiliconChip

Any chance that you could edit your post to make it more legible? I can guess that "letting" means "letter" and "lost" means "loss" but I don't know what "the bank with listed" means.

Although to be honest I think you'd be best to make the time to speak to HMRC, the usual suggestion is to ring them as soon as lines open in the morning, which appears to be 9am Monday - Friday for the IHT helpline.

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/probate-and-inheritance-tax-enquiries

IreneMot

SiliconChip said:

Any chance that you could edit your post to make it more legible? I can guess that "letting" means "letter" and "lost" means "loss" but I don't know what "the bank with listed" means.

Although to be honest I think you'd be best to make the time to speak to HMRC, the usual suggestion is to ring them as soon as lines open in the morning, which appears to be 9am Monday - Friday for the IHT helpline.

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/probate-and-inheritance-tax-enquiries

Thank you and all fixed. Sorry, I'm dyslexic and didn't proofread before sending. A busy and stressful day doesn't help. 

Hoenir

Dd you declare the loss made on disposal or the net proceeds from the sales of the shares ? HMRC can only calculate on the information provided to them. 

IreneMot

Hoenir said:

Dd you declare the loss made on disposal or the net proceeds from the sales of the shares ? HMRC can only calculate on the information provided to them. 

I gave them the information that they wanted on the form. You put in the price at time of death and price when we sold it, the form works out the loss. 

IreneMot

Just a little update

I have been in contact with HMRC about this odd payment. After being on the phone off and on for about 4 hours, they have worked out that have made a mistake and want me to send the money back. 

The problem was that some other payment was put onto my HMRC inheritance tax account. This means when I asked for a refund for the loss in shares, they gave me what they thought was the extra money that wasn't needed for inheritance tax plus the refund.

I just can't believe this has happened and nobody noticed about £180k going missing / being put in the wrong account. A number of staff not sure what to do, saying it should be kept till they make sure everything was correct, one said they could charge me interest!

The one good part is that NatWest did not charge me to send the money back. 

Let's hope they sort out my other payment.