MPs call for UK inheritance tax overhaul
Inheritance tax has become “bewildering and largely inaccessible”, a UK tax professional said as a group of lawmakers called for an overhaul.
The all-party parliamentary group (APPG) on inheritance and inter-generational fairness, comprising four members of Parliament, suggests replacing the current IHT regime with a “flat-rate gift tax” payable on both lifetime and death transfers …
The APPG was set up in February 2019 and heard from professional bodies and think tanks in five evidence sessions. “The key principle is that [the standard rate of IHT] should be low enough for the tax to be broadly based without the need for complex reliefs,” it said in a report published January 29 by the Society of Trust and Estate Practitioners, which provides secretariat support to the group …
The suggested reforms are radical and would completely change the way IHT works, Anthony Nixon, a partner at Irwin Mitchell, said in a release. “A revolutionary view of inheritance tax is exactly what is needed. For years the system has been needlessly complicated,” he said.
My news story for Tax Notes (paywall), January 30 (also published in Tax Notes International, February 10):