HMRC's digIHTal dream

HMRC’s recently published Transformation Roadmap sets out an ambitious vision for a more modern, digital-first tax system. Among the many reforms on the horizon is the digitalisation of inheritance tax (IHT) – a move that, on the face of it, should be welcomed by practitioners and families alike.

As someone who deals with complex estate administration every day, I can say with confidence that anything which improves efficiency and reduces reliance on postal IHT forms being received and scanned by HMRC is a step in the right direction. Too often, important documents go missing or are delayed, adding unnecessary stress to what is already a difficult time for families.

That said, we’ve seen how digitalisation can go awry. The Probate Registry’s transition to a digital probate system led to significant delays – we are now four and a half years on from probate practitioners being mandated to file applications online, and we're only just beginning to see the rewards. Any new system must be thoroughly tested before it goes live, or we risk compounding the very delays we’re trying to eliminate.

Finally, and perhaps most importantly, HMRC's path to digitalisation doesn’t address the core issue: post-submission delays. Filing the IHT return is only the beginning of the process; too often, personal representatives and trustees are left wondering when they can expect to hear a response from HMRC and whether reliefs and valuations are accepted. In our experience, the real bottlenecks arise when corrections are needed or when clearance is sought – especially if a case does not have a dedicated HMRC contact.  IHT is ever-complex, as shown by the forthcoming changes to IHT in April 2026 and beyond. Technology can streamline forms and submissions, but it can’t replace the value of human input after that stage where judgement and continuity are required. Increasing the resource to process cases to completion will be critical to success.

So yes, let’s embrace the digital progress – but let’s also ensure it’s implemented with care, and that the human element isn’t lost.