Tax Rebates & Refunds

£26m inheritance tax rebate for HMRC

September 20, 2012
Posted in Other Tax — Written by Geoffrey

It is usually the case that HMRC sends out tax rebates to individuals and businesses, but it has recently been revealed that the department has received something of a tax refund of its own.

According to a report in the Telegraph, HM Revenue & Customs has managed to recoup as much as £26 million in missing inheritance tax by using new sophisticated technology.

Tax officers have been using advanced computer software known as the ‘Connect System’ to cross reference personal information about taxpayers, including details of loans and bank accounts as well as property transactions and company ownership.

The software, which was only first used about a year ago, has been analysing the financial affairs of more than 300,000 people who claim their inheritance falls below the tax threshold.

Whilst taxpayers’ organisations are up in arms over what they call an invasion of taxpayers’ privacy, the Treasury has defended the new scheme. It argues that HMRC already has access to the information and that the new software simply makes the handling and cross referencing of the data easier and quicker.

Treasury Exchequer Secretary David Gauke said:

“My ambition is for the UK to become the market leader at using data analytics to drive a more effective approach to taxpayer interactions,”

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