A massive £5.1 billion of inheritance tax (IHT) was collected by HMRC in the year to 31 May 2017. This represented a 9% increase on the previous year.
Not surprisingly, the Chancellor has now announced a review of IHT to ensure that ‘the system is fit for purpose and makes the experience of those who interact with it as smooth as possible’.
We are told that the review will include a focus on the technical and administrative issues within IHT, such as the process of filing returns and paying any tax due, as well as practical issues around routine planning and disclosure.
There is no doubt that the IHT regime has become increasingly complex and confusing for taxpayers, which was highlighted by the main residence nil rate band introduced in 2017/18. A simplification would therefore be very welcome. However the cynical ones amongst us can’t help but wonder if that is really what the outcome will be!
For more information, please contact Lesley Sutton on 01484 550037 or email firstname.lastname@example.org.