HMRC claws back £700m in IHT HMRC has clawed back more than £700m in inheritance tax over the past five years from 2,100 families who had taken steps to avoid paying the 40% levy. The families had tried to escape IHT by making gifts during their lifetime but HMRC deemed them to have breached its regulations. Under “gift with reservation of benefit” rules, HMRC can demand IHT is paid if the person continued to benefit from the asset after gifting it. Sean McCann of insurer NFU Mutual said: “With inheritance tax thresholds frozen and property and other asset prices rising, a growing number of families are being caught in the net and are giving away assets in an attempt to avoid a large tax bill.” He added: “If you’re giving assets away it’s important you don’t retain a benefit.” Separate analysis shows that families have lost £650m over the last three years due to falling foul of the seven-year gifting rule that states larger gifts only become IHT-free after seven years. It is noted that the IHT tax take is climbing, with Office for Budget Responsibility analysis showing that death taxes will generate a record £7.2bn for the for the Treasury in this tax year. IHT is becoming a major concern for motorsport business owners.