Latest Parliamentary thoughts on reviewing Inheritance Tax

Published: 14/02/2020
Written by Curwens Solicitors

The All-Party Parliamentary Group for Inheritance and Intergenerational Fairness (which was set up in order to encourage discussions around the work that the Office of Tax Simplification has been doing on reviewing inheritance tax (IHT) has issued a report containing radical recommendations to reform IHT.

Its key recommendations include:

  • A wholesale replacement of IHT rather than mere simplification measures, including reducing the rate of IHT to a flat rate between 10% and 20% with very few reliefs available
  • Taxing lifetime gifts when made at 10%, subject to a £30,000 annual allowance (and gifts to trusts would be taxed in the same way)
  • Abolishing domicile (and using residence instead) as the basis for determining whether IHT is charged on a worldwide estate
  • Ending the capital gains tax uplift on death so that everything passes on a no gain, no loss basis (to encourage lifetime giving)

The report highlights that less than 5% of estates pay IHT and that IHT suffers from perceived unfairness and complexity. The recommendations are intended to deal with these issues, as well as encourage intergenerational fairness.

Contact our Solicitors in Enfield, Hoddesdon & Royston

Call us on 020 8363 4444 (Enfield), 01992 463727 (Hoddesdon), 01763 241261 (Royston), or fill out our online enquiry form.

If you have any questions or queries regarding inheritance tax contact Anne Stennett 020 8363 4444. This email address is being protected from spambots. You need JavaScript enabled to view it.

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