Proposal to cut IHT gifting rule to five years 'a bald tax grab'

Taper scrap also proposed

Hannah Godfrey
clock • 2 min read

Government proposals to cut the seven-year gifting rules on inheritance tax down to five looks like a "bald tax grab and revenue-raising move", AJ Bell personal finance analyst Laura Suter has said.

In its Inheritance Tax Review - second report, the Office of Tax Simplification (OTS) has suggested the seven-year period during which a lifetime gift may become subject to inheritance tax (IHT) is too long. Instead, the OTS said the period should be reduced to five years, so that gifts to individuals made more than five years before death are exempt from IHT. The government argued it could be difficult to obtain records going back as far as seven years, and the latter part of the current period raised little tax. 'Hideously complex' Additionally, the OTS said taper relief should...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

How advisers should approach inheritance planning with clients

How advisers should approach inheritance planning with clients

Crucial for clients to discuss inheritance plans with their adviser

Stuart Ritchie
clock 22 November 2024 • 4 min read
Risk v reward: Applying to 'set aside' final orders in divorce

Risk v reward: Applying to 'set aside' final orders in divorce

Applications to set aside final orders are complex

Claire Andrews
clock 21 November 2024 • 5 min read
Personal representatives and IHT filing following the Budget

Personal representatives and IHT filing following the Budget

'The process of dealing with IHT papers can be onerous'

Blair Gould
clock 21 November 2024 • 4 min read