HMRC internal manual

Inheritance Tax Manual

Liabilities: investigating liabilities: accountants and solicitors' fees

Normally no deduction can be allowed for fees for professional services that are carried out after the date of death. The exception is where work was undertaken after the death, in connection with tax repayments that are included as an asset of the estate. By concession, if this is the case you may allow a deduction for fees not exceeding 10% of the repayment.

If a deduction is claimed in the IHT400 the taxpayers are asked to give the dates for the period during which the work was done. If this information is not provided you should only consider asking for it, if the tax at stake is likely to be worthwhile.

If the deduction claimed is large or inconsistent with the rest of the estate you may wish to consider asking what work was being undertaken on the deceased’s behalf.

You can find additional guidance on how to deal with debts to overseas lawyers, accountants or financial advisors (IHTM27050) in the section that deals with foreign property.