Inheritance Tax - Simplifying Charges On Trusts – The Next Stage

Introduction

The stated aim of HM Revenue and Customs (HMRC) is to bring about worthwhile improvements to the way Inheritance Tax (IHT) trust charges are calculated without any significant impact on the rest of the regime and in keeping with the Government's objectives of delivering fairness while maintaining tax revenues.

It is clear however that some of the measures proposed are targeted at specific tax avoidance methods. The proposals aimed at doing so will add to the compliance burden and costs for the taxpayer, adviser and HMRC alike. In the course of this submission we will suggest an alternative simpler approach, which we believe will achieve the same objective without the attendant cost.