Much has been written in the press over the weekend following the publication of a report last Friday on Inheritance Tax by the Office of Tax Simplification.
The headlines have focused on the proposed shortening of the time limit for taxable gifts from seven years to five, together with the abolishment of taper relief (a reduction of the rate of tax based on how many years ago the gift was given). The report also proposes scrapping the current range of gift exemptions in favour of a single, higher, annual gift allowance, as well as exempting all life insurance policies from IHT, removing the capital gains tax uplift and reviewing the application of Business Property Relief and Agricultural Property Relief amongst other proposals.
The recommendations are now with the government to consider and issue a response.
Shake-up of rules on inheritance tax proposed