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HM Accountax Ltd
HM Accountax Ltd, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 325
Experience:  I am an accountancy professional with more than10 years hand on experience in audit, accountancy and tax affairs.
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I am completing the IHT return of a deceased person. Two

Customer Question

I am completing the IHT return of a deceased person. Two years prior to death he sold shares to the value of £470,000 and lodged the sale proceeds to his bank account.
Soon afterwards he started to make cash withdrawals from the bank account to the point where on his death two years later the monies had been expended.
We have prepared a report and are unable to determine where the cash was expended.
The deceased was unmarried and he lead a simple life style.
What attitude is the Capital Taxes Office likely to adopt and can they argue that in the absence of proof the monies should be included in the estate and create a 40% charge?
Submitted: 11 days ago.
Category: Tax
Expert:  HM Accountax Ltd replied 11 days ago.


I am an advisor at JA and happy to assist you.

In the absence of proof it is highly likely that HMRC will require the amount to be included in estate and pay IHT at 40%.

I hope this answers the query.