Inheritance tax : twenty-ninth report of session 2004-05, report, together with formal minutes, oral and written evidence

The number of estates liable to inheritance tax has grown in recent years, reflecting the rising value of assets in property, particularly of houses.

Following on from a National Audit Office report (HCP 17, session 2004-05; ISBN 0102931550), the Committee's report focuses on the following issues: strengthening compliance checks and enforcing penalties for non-compliance; improving case processing and making the system easier to use, including simplifying forms; and the operation of the tax exemption scheme for heritage assets.

A number of conclusions and recommendations are made, including the need to: improve data collection and analysis to examine the tax gap on undeclared or under-valued assets; consider extending regulations on disclosure obligations to inheritance tax avoidance schemes; and to further reduce the number of long-outstanding cases by setting targets and making full use of powers to secure information required. The report also recommends that the Revenue should consider developing a co-ordinated bereavement website, in co-operation with other departments, containing advice and information on dealing with the death of a relative, including filing inheritance tax and probate returns.