How does it affect Inheritance Tax?
HMRC recognises that Inheritance Tax applies to a single event and concepts such as reasonable care will be somewhat different under these circumstances than for taxes where people make returns more regularly. It also recognises that the position of personal representatives is different from other individuals and trustees who may make a transfer that is liable to Inheritance Tax. The ‘relevant period’ for the Inheritance Tax return will be the date of death or other chargeable event. Where people send in returns for deaths and other chargeable events occurring on or after 1 April 2009 they need to take ‘reasonable care’ or they may be liable to a penalty if the return contains inaccuracies.
