The August edition of the HMRC trusts and estates newsletter has been published:

Inheritance tax treatment of compensation payments

HMRC Trusts and Estates have confirmed the treatment of compensation payments for inheritance tax purposes on the basis it can cause some difficulties for taxpayers and their agents, especially when compensation is received after the date of death.

The right to pursue a claim for compensation is an item of property and therefore an asset of the estate. The open market value …