The Office for Tax Simplification (“OTS”) has published a call for evidence alongside an online survey in an attempt to explore potential simplification of the current Inheritance Tax (“IHT”) regime. The review, which has been welcomed by professional bodies such as the Chartered Institute of Taxation, will cover both existing legislation as well as the Estate administration process.
Whilst IHT still accounts for a relatively small percentage (less than 4%) of overall UK tax revenue, rising house prices and a tax-free allowance which has been frozen since 2010, means that an ever-increasing number of people may be within the scope of the tax. The OTS has therefore expressed a desire to hear from the general public, as opposed to tax and legal professionals, on their personal experiences and understanding of the IHT system.
Areas under review include the process of submitting IHT returns and paying any tax due, the various rules surrounding gifting and the complexities and interaction of IHT reliefs.
The online survey can be accessed by clicking here. The consultation will close on 8 June 2018 with a Report expected to follow in the Autumn.
For more information, please contact Lisa Tait (firstname.lastname@example.org) or your usual AAB contact.