How is it possible to guarantee the Revenue have accepted my Inheritance Tax account and will not come back with further queries and/or ask for further Inheritance Tax?

The Revenue do write out to Personal Representatives after an Inheritnace Tax account is submitted (provided they are prepared to accept what has been submitted) to indicate that if the PRs have not heard from the Revenue after a certain date, it can be considered that they will have no further queries.

However, the more surefire way of dealing with this query is to apply for Inheritance Tax clearance. The Revenue will then provide a formal letter and code, indicating that unless matters change (i.e. because of perhaps a Deed of Variation), they consider that they have no further queries and will conclude matters at their end.

What if inheritance tax is paid on a property reported at a certain value to HMRC, which is then sold at a lower value – can the difference in inheritance tax be claimed back?

Yes, subject to various technical criteria provided the relevant documentation is completed in the right way, it is possible to make a claim for relief on the loss made on the sale of land, if the sale occurs within four years of the date of death. Provided the Revenue accept the claim, the “overpaid” Inheritance Tax would then be refunded.

What about shares that lose money after inheritance tax is paid online?

Likewise, it is possible to make a claim for relief on a loss made on the sale of shares when this is done within 12 months of the date of death.

What about assets (such as a property), which are given by the deceased during their lifetime as a potentially exempt transfer, then sold after the deceased date of death at a loss?

This is where matter become quite complex.

An example might be where a property was given away by A to B, with A then dying within seven years. Normally (subject to taper relief) if the deceased’s estate was taxable B woudl be expcted to pay the proportiinate Inheritance Tax that would then be due on the failed potentially exempt transfer.

However, the Revenue will allow, where that property is then sold after the date of death (within certain timeframes) for the sale value to be substituted so as to reduce the Inheritance Tax accordingly.