Survey launched on Inheritance Tax to simplify regime

Survey launched on Inheritance Tax to simplify regime

The Office of Tax Simplification (who give independent advice to the government about the UK tax system) has launched a survey on Inheritance Tax (IHT) to review the regime and steps to simplify it.  

The review will include:-

  • The process of submitting IHT returns and paying tax;
  • Practical issues of routine estate planning advice and the complexity of the rules as well as the perception of IHT; and
  • The scale and impact of decisions regarding investments and assets because of the IHT rules

The consensus is that this may be an opportune time for farmers and business owners to review their succession planning strategy, before agricultural and business benefits from IHT are amended, reduced or possibly removed.  

Come what may, it is good practice for farmers and business owners alike to review their IHT position and the likely IHT liability on death to consider whether steps to diversify are required.  Possible changes are purely speculative at this stage but it is likely that any changes to the IHT rules on farming and business assets will be detrimental.

The budget is expected later this year with the final say on changes to IHT lying with the Chancellor.

For advice about your IHT exposure, please contact a member of our team.