Proposals from the Institute of Public Policy Research (IPPR) that inheritance tax (IHT) should be scrapped have proved controversial and are still dividing financial advisers.
The IPPR suggested that there should not be a tax on the gifting of inheritance, but rather the receipt.
People would be able to have a tax free inheritance limit of £150,000 if the capital receipts tax is adopted. Experts are divided over the effectiveness of these proposals - some suggest that the system may be unfair because it benefits families with more children.
In addition, from April this year the Revenue and Customs will restore a requirement where people will be legally required to disclose setting up trusts for possessions and property for the purpose of determining inheritance tax, the Financial Times reported.
Contact a member of our Private Client Team for up to date advice on these changes.
