PENALTY UPHELD FOR FAILURE TO DISCLOSE GIFT ON IHT RETURN

摘要

Hutchings v Revenue & Customs [2015] UKFTT 9 (TC) concerned an appeal against a penalty for the incorrect completion of an inheritance tax (IHT) return by the executors of the estate of the late Mr R Hutchings. The penalty of £87,533.80 (50% of the potential lost tax) was assessed on his son C Hutchings, the principal beneficiary of the estate. Mr R Hutchings had an undeclared Swiss bank account which contained £443,669 which was gifted to Mr C Hutchings via a transfer to his Swiss bank account seven months before Mr R Hutchings died. When dealing with the estate the executors asked all the beneficiaries, including Mr C Hutchings, for details of gifts made.