Guidance for representatives
15. The Revenue provides guidance notes and information
on its website to assist representatives in completing the tax
return. It has also launched a joint probate/Inheritance Tax telephone
helpline which has been well-received. In response to the C&AG's
Report, the Revenue has made it easier to access information on
Inheritance Tax on its own website and it is working with other
government departments to improve the information available on
their websites. It
is also considering, with other departments, launching a 'bereavement
journey' website that provides a full range of information and
advice for people when dealing with the death of a relative.[22]
16. Recent feedback to the Revenue showed that only
36% found its guidance notes easy to understand. Some representatives
were uncertain about how to value property for Inheritance Tax
purposes, paying for professional valuations when a broader estimate
may suffice. The Revenue is looking at whether it could do more
to highlight the availability of some websites, such as the Land
Registry's online database, that representatives might consult.
There is also uncertainty about how properties funded by Islamic
mortgages should be valued for Inheritance Tax purposes. Use of
these mortgages is expected to grow in future, but at present
the Revenue deals with relatively few cases on an individual basis,
rather than by issuing general advice.[23]
Payment terms
17. The Probate Service does not grant probate until
Inheritance Tax due is paid. This is an important safeguard in
ensuring tax returns are submitted, but representatives have often
needed a loan to pay the tax, with the interest costs met from
the estate after probate. To alleviate this, the Revenue allows
payment by instalment of the tax due on property and some other
assets. Since 2003 representatives have also been able to use
funds held in an estate's bank accounts to pay the tax due before
obtaining probate. Some estates may nevertheless have insufficient
liquid assets for representatives to pay the tax in advance of
probate, if for example the main asset is the family home. The
Revenue considers that estates usually do have enough liquidity
to pay the tax due, but it has not analysed those potentially
affected.[24]
18 C&AG's Report, para 3.1; Q 13 Back
19
26th Report from the Committee of Public Accounts,
Difficult forms: how government departments interact with citizens
(HC 255, Session 2003-04), Recommendation 1 Back
20
C&AG's Report, paras 3.2-3.3, Figure 17; Q 12 Back
21
Q 59 Back
22
C&AG's Report, para 3.4; Qq 34-35 Back
23
C&AG's Report, paras 3.3-3.4, Figure 18; Qq 36, 58, 98-99 Back
24
C&AG's Report, Executive Summary para 13; Qq 20-21 Back