Software used to recoup £26m inheritance tax

Her Majesty’s Revenue and Customs has been able to recoup over £26million of unpaid inheritance tax, thanks to complex software that cross references personal financial information from different sources.

The "Connect System" examines personal financial information from bank accounts, loans, property transactions, and other records, and is being used to look at over 300,000 people each year who state that their inheritance is less than the £325,000 threshold. A lot of the details are available as a result of the information submitted in self-assessment forms.

Treasury Exchequer Secretary David Gauke said he wants to see the UK move "towards a data-driven view of taxpayers that automatically draws on comprehensive data from across the department, wider government and third parties". He also said that the UK is among the top tax-paying countries, with 92 per cent of tax receipts collected. He said that tax avoidance and evasion is not widespread, and said the problem lay at the door of a small number of "cowboy" tax advisers.

If you live in Northern Ireland and require advice on inheritance tax, capital gains tax, income tax, or general tax planning, contact Wilson Nesbitt in Belfast or Bangor by calling 0800 840 9288.