From The BBC:
Bereaved families will have to pay 3% interest on late payments of inheritance tax from next month, HM Revenue and Customs has confirmed.Such payments are due within six months of a death. Interest on late payments, which roughly followed Bank of England base rate, fell to zero in March. Meanwhile, the Treasury will set the interest rate it pays when too much tax has been levied at 0.5%. The Taxpayers’ Alliance described the moves as “desperate” and “unfair”. Inheritance tax is levied on estates, including assets such as property, possessions, money and investments, worth a total of more than £325,000. The value of the estate above that threshold is taxed at 40%.
In a statement, HM Revenue and Customs (HMRC) said: “Interest is not a penalty but compensation for tax paid late. “We are streamlining the rates charged and paid for interest to simplify and make things fairer for customers. “This has been subject to extensive consultation over the last 18 months and has been largely we…
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