In a letter published on the 31st January, the Chancellor of the Exchequer has requested that the Office for Tax Simplification carry out a review of the inheritance tax regime.
The Chancellor has acknowledged that the inheritance tax system is complex and wished for simplification to ensure that the system is fit for purposes and operates as smoothly as possible.
It is requested that the review considers:
- Technical and administrative issues, such as the process of submitting returns and paying any tax due
- Practical issues around routine estate planning and disclosure
- How current gift rules interact with the wider inheritance tax system and whether the current system causes distortions when making decisions about transfers, investments and other transactions.
A document covering the scope of the review will be agreed and published by the Office for Tax Simplification in due course.
This request for a review comes less than a year since the Residential Nil Rate Band was introduced. It is however currently uncertain whether Residential Nil Rate Band will be within the scope of the review.
A copy of the Chancellor’s letter can be found on the link below