Families struggle as HMRC profits from inheritance tax delays

In the United Kingdom, families are facing unprecedented challenges through the inheritance tax system, as recent updates have made the process more complex. Executors are now responsible for calculating the overall value of an estate and paying inheritance tax, which has introduced delays. Affected individuals often must deal with the emotional burden of grief while navigating this cumbersome process, leading to heightened complaints against HM Revenue & Customs (HMRC). The necessity of paying inheritance tax before being granted probate complicates the situation, as families may lack immediate cash resources to settle debts, forcing them into loans or delayed estates. The government has acknowledged these issues, noting that pension schemes typically take long to provide required information about a deceased individual’s benefits. Executors are expected to report and pay tax from various pension schemes, increasing the chances for complications and prolonged wait times for grieving families. This has drawn attention to the robustness of the probate process, with many taxpayers expressing frustration over HMRC’s financial gains during these delays. The interest on late payments adds to the criticisms, as the revenue collected feeds directly into government coffers. Families already in distress are being pushed further from their financial comfort zones as they encounter the stringent six-month deadline that remains unchanged despite the ongoing complications. The government solicited feedback from industry sources regarding the practicalities of their planned revisions to the inheritance tax, but objections regarding the feasibility of adhering to such tight timelines were largely ignored. This situation illustrates a broader theme of systemic issues within the tax framework in the UK. With families facing the stressful ordeal of probate while managing their grief and potential financial instability, the criticisms directed at HMRC underscore the need for significant reforms in the inheritance tax system. The current model seems to benefit the tax authority while effectively disregarding the challenges faced by the bereaved, highlighting a disconnect between governmental operations and the lived experiences of citizens dealing with death and its subsequent financial implications.