Archive for March, 2015


Theresa Bunn aged 56, lied about the value of her aunt’s estate and failed to declare large cash gifts made in her life time. The estate was worth over £1.5m. Bunn declared the estate value to be £285,000 to HMRC to keep it below the tax allowance.

Bunn’s finances were investigated after HMRC officers discovered she had been financially supporting a friend and using her friend’s bank accounts to hide money and evidence of her spending from her family.

She was charged with cheating the public revenue contrary to Common Law in April 2014 and admitted the offence on 9th March 2015.

Bunn has been jailed for 2 years and 8 months as she lied to avoid paying an inheritance tax bill of around £500,000.

Stuart Taylor, assistant director, HMRC, said: “Theresa Bunn had the benefit of large amounts of cash and lied purely to avoid paying tax. The vast majority of us pay what is due, when it is due, but HMRC will not tolerate tax fraud and will investigate those we suspect of operating outside the law.”

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There are ways to reduce an Inheritance tax liability in a legitimate way. Seeking legal or financial advice is a more straight forward and practical way rather than risking a prison sentence. HMRC are naming and shaming more tax evaders and investigating all areas of tax avoidance.

The current tax threshold for inheritance tax is £325,000. Any amount above this is taxed at 40%.  A married couple can claim the tax allowance of the first spouse to die, giving them an allowance of £650,000 on the death of the surviving spouse.

There are exemptions such as charitable gifts and Business Property Relief. Inheritance tax planning is vital to anyone who has assets which a value in this region.

 

For more information on how you can include tax planning alongside your Will

call WE Solicitors LLP today.

Email: info@wesolicitors.co.uk

Telephone: 0800 294 3065 / 0161 683 3191