OTS calls for inheritance tax review
The Office of Tax Simplification
(OTS) is calling for a "top-down" review of the entire inheritance tax system, noting that the current format may not be fit for purpose.
In a review of the UK tax system, it notes that the current framework for those writing a will
could be out of date.
Tax reliefs are sometimes "complex", while some of the smaller tax reliefs have not changed for years, such as the exemption for monetary gifts on marriage which has not increased since 1975 and the annual exemption for gifts, which has been £3,000 for the last 30 years.
The OTS said "it would clearly be sensible" to increase these, noting that the annual exemption would now be almost £6,000.
In light of the Mirrlees Report, which described inheritance tax as "a somewhat half hearted tax, with many loopholes and opportunities for avoidance though careful organisation of affairs", the OTS said a "proper review" is required.
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It comes as savings group NS&I reports that many people are failing to talk about writing a will
with their parents.
Published on: March 8, 2011
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