HMRC ponders savers 'paying death tax while living'

People suspected of trying to avoid inheritance tax could be forced to pay the charge before they die, under changes being considered by the Government.

According to The Telegraph,measures put out for consultation suggest HM Revenue & Customs could demand "accelerated payment" where individuals are using potentially illegal avoidance schemes.

Savers could pay death tax while they are still living Credit: PA

Stuart Phillips, of tax planning firm the Private Office, told the Daily Telegraph: "The concern is that the Revenue takes a highly aggressive stance, just like with the film schemes for which celebrities have been under scrutiny, and terrifies families who have been engaging in legitimate tax planning that has been used for many years.

An HMRC spokesman said: "The proposals in the consultation paper will only affect a small minority of wealthy individuals who actively seek to avoid Inheritance Tax. Couples would still be able to leave up to £650,000 tax free to benefit their children or grandchildren."