Tax Experts Say Change ‘Might Sit On The Shelf Until Time Permits’

The Office for Tax Simplification has published the first half the results from its consultation on simplifying inheritance tax.

Chancellor Philip Hammond had written to the Office of Tax Simplification (OTS) in January asking for a review of the inheritance tax (IHT) system and setting out a number of issues which he would like them to address.

The report, which was published on Friday (23 November), outlines the beginning of proposed changes to the inheritance tax system following a public consultation which ran from April to June. It received an ‘unprecedented’ amount of responses according to the organisation.

A second report in addition this publication will be issued in the spring, where experts at Irwin Mitchell Private Wealth argue the majority of the work will lie.

Expert Opinion

“The OTS report on simplifying IHT published today, the first of two parts, makes some sensible and positive ideas but they all require action by HMRC at a time where Brexit dominates the headlines and legislative table.
“The more difficult issues needing even greater ideas to simplify the tax will have to wait until the second report in the spring – creating more delays to how inheritance tax works for everyday people. It looks like ‘improving the customer journey’, as HMRC puts it, might sit on the shelf until time permits.
This first report will help the public to understand how inheritance tax works, and it argues IHT is more of worry than it need be for some people. This downplays how urgently reform is needed – for instance, the need to ‘improve the journey’ is shown by about 50% of estates needing to submit accounts whereas only 5% pay the tax. That is quite out of proportion and so action is truly needed.”
Kelly Greig - Partner