OTS’s proposed IHT reforms: Good or bad for taxpayers?

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OTS’s proposed IHT reforms: Good or bad for taxpayers?

By Malcolm Finney, November 2019

Malcolm Finney looks at some of the proposals by the office of tax simplification for the reform of the inheritance tax regime. 

The office of tax simplification (OTS) produced its second report on its review of inheritance tax (IHT) in July 2019. This article takes a look at some of their proposals: a reduction in the potentially exempt transfer (PET) regime’s seven-year period, including the abolition of taper relief for gifts; amending the rules on allocation of the nil rate band (NRB) to lifetime gifts; combining the lifetime gift exemptions into a single allowance; and removing the need for trusts and life policies.  

One of the proposals also considers aligning the inheritance and capital gains tax provisions and abolishing the uplift on death for capital gains tax.

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