More on inheritance tax shakeup

The Office of Tax Simplification (OTS) provides advice to the Chancellor on simplifying the UK tax system. In a letter dated 19 January 2018 the Chancellor Philip Hammond wrote to the OTS to request a review of inheritance tax (IHT) regime and asking to hear any proposals for simplification.

The Chancellor was particularly interested in focusing on the technical and administrative issues within IHT. The IHT rules have become more complicated as new provisions such as the residence nil rate band (RNRB) have been bolted on to the existing rules. In response, the OTS has published an IHT scoping document and plans to issue a call for evidence shortly.

The OTS expects to publish a report in the autumn of 2018 that:

  • Provides an initial evaluation of aspects of the current IHT regime, and what they mean for taxpayers, HMRC and the Exchequer;
  • Identifies opportunities for simplification of IHT supported by analysis and evidence; and
  • Offers specific simplification recommendations for government to consider.

The review will look at areas of the IHT regime including gift rules, submission of IHT returns and probate issues that commonly arise. It will be interesting to see if any of the proposals put forward by the OTS find their way into the Autumn Budget later this year.

Posted in Inheritance Tax

Exeter Accountant MJ Smith & Co

Celebrating 25 years of excellence.

Free 1st Meeting
Fixed Fees
Free Support!

Find out more

Client Portal Login

Forgot Password?

Latest News

Don’t forget to renew your tax credit claims

Families and individuals that receive tax credits should ensure that they renew their tax credit claims by 31 July 2018 …
Read More

Companies and capital gains

Capital Gains Tax (CGT) is not payable by limited companies or unincorporated associations when they sell an asset and make …
Read More

When do charities pay or not pay tax?

The tax treatment of charities is complex. Many charities trade either as part of their charitable interests or to raise …
Read More