The first part of the Office of Tax Simplification (OTS) Inheritance Tax (IHT) review has now been published and concludes that far too many people are required to complete IHT forms and that the process is both complex and old fashioned.
A record number of respondents took part (more than any previous review) and many of the 3,500 who did so said that they felt they were being asked to fill in complicated forms even where the relative who had died had only left a small amount.
This is the first part of the review, which sets out the issues and complexities of IHT and provides an overview of the concerns raised, together with recommendations. This aspect very much examines the administrative issues whereas the second report is expected to cover more technical tax issues in Spring 2019.
Angela Knight CBE, OTS Chairman, commented:
“Inheritance tax is both unpopular and complicated. The basic design of the tax itself is for Government, but at the OTS we can address that most frequent of all comments - at least make it easier for the families to fill in the forms”. The OTS has worked on ways to address these practical complexities, which have come through loud and clear.
Let’s hope they can address the concerns and make IHT less complex and we look forward to the second part of the review next year.
If you have IHT concerns, please contact one of our Financial Planning Consultants for independent financial advice at an office near you.Contact Us
If you like this article and would like to subscribe to INSPIRED, our FREE monthly newsletter, then please click SUBSCRIBE.Subscribe