The Office of Tax Simplification (OTS) is an independent body tasked with making recommendations to government as to how tax legislation can be simplified. Not an easy task given our hideously complicated system!
In January 2018 The Chancellor of the Exchequer asked them to look at “administrative and technical aspects of Inheritance Tax”. They issued a report into administration aspects in November 2018 and have now published a 107 page report into technical aspects of the tax.
OTS key recommendations
What happens next?
By the time you read this article we should have a new Prime Minister, and possibly a new Chancellor as well. However, it is fair to say that IHT reforms will not be near the top of their list of priorities.
It is possible that some of the less controversial measures could be introduced fairly quickly, but my guess is that most of these changes will be deferred until after the next General Election in 2022.
Labour Party Policy?
Recent reports suggest Labour are considering more radical policy changes by replacing IHT with a Lifetime Gift Tax (LGT):
It is not too dramatic to say that the IHT system is likely to be radically different in a few years’ time, regardless of which political party is in power. This gives farmers the chance to take action now to protect their businesses.
For more information or advice on how you can protect your farming business, call 01228 690200 or email email@example.comFind out more about our tax services
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