UK taxman HM Revenue & Customs (HMRC) has rolled out an online inheritance tax (IHT) guidance tool.
It will support taxpayers who are unfamiliar with the IHT process and who need guidance on whether they will need to pay IHT and what forms they will need to complete.
Where the estimated estate value is above the relevant IHT threshold – currently set at £325,000 ($448,000, €378,000) – the tool will direct customers to further information on other reliefs available that could reduce their IHT liability.
It will also direct taxpayers to guidance on probate.
But HMRC said that the tool is not a calculator and should be used as guidance.
Kim Jarvis, technical manager at Canada Life, said: “IHT is by its very nature a complex area of financial planning, but this tool should prove valuable to those who are unfamiliar with the process and the forms requiring completion.
“Although HMRC has been clear the tool should only be used as guidance, it will helpfully show if the estate will need to pay IHT. The tool is not a calculator and clearly doesn’t replace good financial planning or the role of advice, but it is a welcome development by HMRC.”
