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The Office of Tax Simplification makes recommendations on simplifying IHT

The Office of Tax Simplification (OTS) recently published its second report on making Inheritance Tax (IHT) simpler to understand and have proposed a range of recommendations. 

In sumnmary:

  • Making changes to lifetime gift rules and the length of time that gift can be counted in someone’s estate on death
  • Potentially making Business Property Relief tests tougher
  • A review of how Agricultural Property Relief applies to farmhouses is a welcome suggestion as this can be particularly difficult for farming families
  • Removing the need for life assurance policies to be written in trust to remain IHT free, making it simpler for everyone

It is important to remember that these are only recommendations at this stage and to be implemented would need to be changed in law.

The rules surrounding death and IHT are complex and as this latest report demonstrates, are under constant review, given that IHT is widely regarded as one of the most unpopular forms of taxation.

At Armstrong Watson we are able to provide bespoke tax planning, financial planning and wealth management under one roof to help ensure that our clients have the best opportunity to pass on their wealth to those they wish to receive it. 

You can read the full report here.

Armstrong Watson Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 542122. Registered as a limited company in England and Wales, number 7208672. The registered office is 15 Victoria Place, Carlisle, CA1 1EW. Armstrong Watson Financial Planning & Wealth Management is a trading style of Armstrong Watson Financial Planning Limited.

If you’re concerned about Inheritance Tax please contact us on 0808 144 5575 or email help@armstrongwatson.co.uk

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