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Following a request from the Chancellor the Office for Tax Simplification (OTS) has undertaken a review into the Inheritance Tax (IHT) regime and their first report has now been published.

Due to the wide scope of the review and unprecedented level of engagement from advisers and the general public, the OTS will publish two reports. This first report is on the day to day matters of concern to all who responded; the second will explore key technical and design issues and will be released in Spring 2019.

The OTS has gathered evidence about a range of concerns and perceptions people have about Inheritance Tax, which fall into three main categories:

  Other responses gathered from the OTS survey (answered by 3,000 people) included:

Following the review the OTS has made various recommendations to simplify IHT:

The areas of complexity identified above will be looked at in more detail in the OTS’ second report as well as Gifts with reservation of benefit, trusts and gifts to charity.

Links to our guides:

Main residence nil rate band

IHT: Business property relief

IHT: Agricultural property relief

IHT: estate planning checklist 

Trusts  

IHT: charitable giving

External link:

Inheritance Tax Review – first report: Overview of the tax and dealing with administration