HMRC made us wait a year for £153,500 tax rebate

When my mother died, probate was delayed for four years because of financial complexities. During that time my father paid inheritance tax on his solicitor's advice to prevent interest accruing, but the solicitor's estimate was wildly out. He applied for a rebate a year ago; eight months later HMRC confirmed he was owed £153,500, and two more months passed without a word.

My father is 86; he used all his savings, sold a field to pay the tax he thought he owed, and has been left very short of money. Three days after I raised his case with HMRC, he was called by a flesh-and-blood human and the money was paid into his account that afternoon, along with accrued interest.

HMRC blamed a "handling error" for the delay. The interest HMRC charges procrastinating taxpayers — as well as the fine — is the Bank of England base rate (now 3.75%) plus 4%, while the interest it pays us if it is late is 1% below the base rate. HMRC insists cases are resolved within 15 working days.

United Kingdom

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