New inheritance tax fines revealed
ALISTAIR Darling was yesterday accused of trying to squeeze more cash out of grieving families as plans for a punitive new inheritance tax crackdown emerged.
From April next year, any family deemed to have made an error on complicated HM Revenue & Customs death duty forms through failing to “take reasonable care” could be punished.
The changes – buried in Treasury background files released in last week’s Budget – mean families would pay 30 per cent of the sum not properly declared. For something undervalued by £1,000 this means a £300 fine, plus the missing £1,000.
The TaxPayers’ Alliance said: “It’s rank opportunism to try to squeeze more money out of people.”
Accountants suspect HM Revenue & Customs have been told to recoup more cash. A Treasury spokesman said: “It’s about making the system better targeted.”
HM Revenue & Customs said: “This is about coming down hard on people who take advantage.”