In a case earlier this year, Harris v HMRC, a personal representative (‘PR’) of an estate dealt with an estate worth around £1m. There was inheritance tax of over £300,000 payable.
The personal representative handed to a third party (a relative and beneficiary of the deceased) a sum of money on the understanding that that third party would settle the inheritance tax (‘IHT’) liability of the estate (amongst other sums outstanding). That third party returned home overseas, did not pay the outstanding inheritance tax and the PR could not contact him.
HMRC ...
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