Inheritance Tax part of Settlement

[Idee77]

I also just received the latest brown envelope. I had signed the settlement offer last year and sent it back to them (had agreed the IHT + tax etc). Was waiting for their final acceptance letter (in the mean time the trustees released the loans.......HMRC dont know this) which never arrived - upon questioning I found out about the LC review and they were giving people the option to stall settlement pending outcome of review. In January they wrote telling us the outcome and saying they would present all options by end of July (this brown envelope) - they also said 'you will be able to settle on the SAME figures as previously agreed'. So this particular brown envelope.. the normal tax and interest part of the settlement is the same as agreed... but they have bumped they IHT up by 2.5k which I assume is the conitnued build up of the 0.25% per quarter..... surely they cant do that since they said the previously agreed settlement figures were fixed until we had a chance to consider this latest letter?

I had the same problem and wrote 2 complaint letters regarding my being charged for HMRC's incompetence in delaying my settlement. I had started my settlement in March 2019 and paused in Oct due to the review and the assurance my calculations would not be affected. Though both complaint have acknowledged my settlement was delayed (on HMRC's side), they have still not offered back the difference in 2019 and 2020 calculations of the IHT. They offered me monetary redress but I am not satisfied and am now taking my complaint up with the Adjucator's office. Even though I have fully settled now because I didn't want any further penalties, I will continue to chase this unfair recalculations and a refund, no matter how long it takes or how devalued the money may become. HMRC is unfair!!

[Alexisa]

I have had letters originally telling me that no IHT was due on the scheme then subsequent letters over the years telling me there is and then assorted letters and offers detailing numbers that vary by 15k.

I’ve trawled through years worth of posts on here for days and countless google searches trying to get a definitive answer but clarity, there is none.

It’s a hybrid of Alice in Wonderland and Kafka.

Just had the same issue.mtold in April 19 there was no IHT due, now asked for £16k+

[Alexisa]

I had the same problem and wrote 2 complaint letters regarding my being charged for HMRC's incompetence in delaying my settlement. I had started my settlement in March 2019 and paused in Oct due to the review and the assurance my calculations would not be affected. Though both complaint have acknowledged my settlement was delayed (on HMRC's side), they have still not offered back the difference in 2019 and 2020 calculations of the IHT. They offered me monetary redress but I am not satisfied and am now taking my complaint up with the Adjucator's office. Even though I have fully settled now because I didn't want any further penalties, I will continue to chase this unfair recalculations and a refund, no matter how long it takes or how devalued the money may become. HMRC is unfair!!

I have written to Mary Aiston and complained, but not sure that will do anything. I keep getting a bigger and bigger settlement number each time they look at something

[Wimbledon]

Hi Webberg

So, as per your message above I thought I must have just not read things right. I have been through it all carefully and HMRC make it quite clear that the Trusts satisfied Section 86 and the inheritance tax is being charged under Section 72. There is no indication that IHT is voluntary at all. And the settlement offer includes the IHT in the total bill to be paid within 30 days, assuming loans are written off within 3 months. I am going to settle but I think I will put this settlement through a tax adviser to be checked. I certainly do not want to be bounced into paying IHT I may not owe.
The Trusts are Hamilton, Penfolds, Lighthouse and Assignment Solutions.

Hi, how did your discussion go on this? i am in the same situation, there is no option to not pay the IHT in my offer. I have the same trusts, do we know if they are writing off loans?