- 25th February 2019
- Posted by: steve mills
- Category: Blog, Tax
Our clients are bemused by the new Inheritance Tax laws that have become law. Practitioners are equally surprised by how the new system has become much more complicated. In November 2018, the Office of Tax Simplification (OTS) released their first report following a review of the current Inheritance Tax system. The Chancellor requested the review and the OTS provided recommendations to simplify Inheritance Tax from an administrative and technical standpoint.
The OTS recommended that “The government should implement a fully integrated digital system for Inheritance Tax”. We predict that the government will start to create a digital system this year but this will be a time-consuming task. It is probable that the government may first proceed with some of the other recommendations made by the OTS that will be quicker to implement.
These include simplifying the current Inheritance Tax forms, establishing a short form for the simplest estates, introducing an automated payment receipts system, and streamlining the probate and payment process with HM Courts and Tribunals Service. Reality is that if your estate is more than the NRB threshold of £325,000 then you need to understand the implications as the Tax rate is 40%. Please call me to fix a free consultation where I can work out the implications for your estate.
It is also expected that the OTS is to release a second report covering wider areas of concern in spring 2019.
If you have any questions regarding Inheritance Tax, contact us using the details overleaf.