Revenue raised the bill for taxes and charges during her lifetime and then didn’t pursue it. The debt sat on her file until she passed away and then the Executor had to negotiate with Revenue. All I know is that the tax debt was circa £20k and I ended up paying near £40k to clear the debt.Very odd stories, as tax penalties can not be charged on an individual after their death. (Arrears and interest can.)
so she would have known she had a liability but just ignored it?Revenue raised the bill for taxes and charges during her lifetime and then didn’t pursue it. The debt sat on her file until she passed away and then the Executor had to negotiate with Revenue. All I know is that the tax debt was circa £20k and I ended up paying near £40k to clear the debt.
Not exactly. She knew she had a liability and didn’t have it!so she would have known she had a liability but just ignored it?
Yes, if the penalties are charged while the person is still living, they remain payable post-mortem.Revenue raised the bill for taxes and charges during her lifetime and then didn’t pursue it. The debt sat on her file until she passed away and then the Executor had to negotiate with Revenue. All I know is that the tax debt was circa £20k and I ended up paying near £40k to clear the debt.
I had a choice in fairness. I could of course have refused the legacy and the Executor would have had to then sell it to settle the debt. I wanted to retain the property in the family.I would refuse to pay any leftover taxes, penalties from a deceased relative.
Is it possible to decline such an inheritance? Unless one wanted to retain a property.
It reminds of the guy that got 12 penalty points. His mother was in a nursing home, he was driving her car around recklessly.
I think its still considered as a preferential loan in which case benefit in kind would apply.A loan with no repayment schedule is not a loan!
When you fill out the form for US holdings for shares there is usually a piece about cross border tax liability and data sharing (so you don't get taxed in the US as well as here). I do remember having to provide my PPS number so I think they might notify Revenue here in order to clear that you don't have an equivalent tax liability in the US.Bit of a reach, that. They don't routinely monitor private bank accounts in real time.
I'd imagine they received IRS data and matched it with their own records.
I wouldn't be so sure of that.
How can there be benefit in kind without an employment relationship between the parties?I think its still considered as a preferential loan in which case benefit in kind would apply.