A new drive by HM Revenue & Customs (HMRC) aims to clamp down on inheritance tax (IHT), it has been reported.
Financial information such as bank statements and pension plans are being examined by HMRC to ensure that gifts made during the seven years prior to the death of the benefactor are declared accurately, according to the Telegraph.
IHT is levied at a rate of 40 per cent on all assets above the boundary of £300,000 upon an individual’s death as well as gifts made by the party within the previous seven years, unless they fall within certain limits.
Those concerned over IHT may benefit from seeking legal advice in order to see how it may affect them and how its effects can be diminished.
HMRC issued a newsletter in August that stated from now until March 31st 2008, it would be paying "particularly close attention" to lifetime transfers.
In his last Budget as chancellor, prime minister Gordon Brown announced plans to raise the IHT limit to £350,000 by 2010.