No planned changes to IHT following OTS review
Following the Office of Tax Simplification’s first five-year review, HM Treasury has ruled out changes to how Inheritance Tax (IHT) is based, despite all of the recommendations. The OTS was commissioned by Chancellor of the Exchequer to review IHT in 2018.
The official response was as follows:
“…there are a wide range of views about how to reform IHT. the report also raised wider questions about policy issues…
As a result, after careful consideration of your recommendations, the Government has decided not to proceed with any changes at the moment, but will bear your very valuable work in mind if the Government considers reform of IHT in the future.”
IHT is predicted to raise £6 billion over the next year, as more families are affected amid rising house prices and the Inheritance Tax threshold freeze.
For further details, please see this document.