3rd August 2020

Prudential: Are we nearly there yet?

Overview 

Those with good memories might recall these initiatives…

• January 2048 – the Chancellor (Philip Hammond) asked the Office of Tax Simplification (OTS) to carry out a review of Inheritance Tax (IHT) 
• November 2018 – HMRC issued a consultation setting out the government’s thinking on making trusts fairer, simpler and more transparent. 

Both these ‘projects’ are very important in the world of financial planning, so let’s check-in to consider how each has progressed.

Review of IHT - where are we with this?

In November 2018, the OTS issued its first of two reports focusing on administrative aspects. This First Report reflected on the fact that although less than 5% of estates pay IHT, executors must complete IHT forms for half of all deaths. So, the key administrative recommendation was for the government to simplify this by giving renewed consideration to digitising and simplifying the necessary administration.

The second report published in July 2019 explored the main complexities and technical issues arising under the IHT rule book. That stretched to more than 100 pages with 11 recommendations split across 3 key areas

• Lifetime gifts
• Interaction with Capital Gains Tax (CGT)
• Businesses and Farms

View full article here. 

Tax, Trust & ISA