Chancellor requests OTS review of Inheritance Tax

Phillip Hammond has asked for a full review of the IHT regime. In his letter he explains that the review should “focus on the “technical and administrative issues within IHT such as the process of submitting returns and paying any tax due, as well as practical issues around routine estate planning and disclosure. It could also look at how the current gifts rules interact with the wider IHT system, and whether the current framework causes any distortions to taxpayers’ decisions surrounding transfers, investments and other relevant transactions ”

It is too early to speculate on what may come out of the review;  although we note that they have reviewed the taxation of relevant property trusts in a consultation back in 2014 but decided to make no change. However, the statement does suggest that perhaps there will be a focus on certain aspects of the IHT legislation, such as Business Property Relief  and Agricultural Property Relief, where the main reason for the investment may be tax related. A storm ahead perhaps– we would appreciate your views in the comments below.

Chancellor requests OTS review of Inheritance Tax