The All Party Parliamentary Group has just published a report proposing wholesale reform to inheritance tax which would mean replacing most of the current rules, abolishing most of the current exemptions (for example for business and agricultural property and gifts more than 7 years before death) and replacing it with a flat rate tax charge on lifetime gifts and transfers on death.
Clearly this is only a recommendation and not binding on Government, however, it may be an indication of things to come.
If you have plans to pass wealth to your family, now might be the time to consider doing so sooner rather than later. Careful consideration is needed, taking into account capital gains tax as well as current inheritance tax rules. However, if you currently own a valuable business or farm which you plan to pass down to your family, at the moment it is probably exempted from inheritance tax. That may change in the future, so it might be worth revisiting your plans.
For further advice on this matter, please contact Jane Parry (jane.parry@pmm.co.uk), Wendy Anderson (wendy.anderson@pmm.co.uk) or your usual PM+M contact.
