Omnium Wealth Management

Inheritance Tax red tape to be ‘cut for 200,000 estates a year’

Inheritance Tax reforms being introduced from 01 January 2022 will result in a reduction of paperwork for many beneficiaries.

The changes mean that more than 90% of non-taxpaying estates will no longer have to complete Inheritance Tax (IHT) forms when probate or confirmation is required.

It is estimated by the Treasury that this will reduce paperwork for more than 200,000 estates every year.

In 2018, the Office of Tax Simplification (OTS) recommended “changes to the current forms to reduce the administration of estates”.

The OTS also claimed that, although fewer than 5% of estates are liable for IHT, the current reporting system still requires 50% of estates to fill out forms.

Once the reforms are introduced next year, for those who do need to file IHT returns, all parties involved will no longer have to provide a physical signature.

This was originally a temporary measure introduced during the Covid-19 pandemic, but the Treasury has decided to make it permanent.

John Bunker, Chair of the Private Client Technical Committee at the Chartered Institute of Taxation, said:

“We welcome that many grieving families will be spared the additional stress of supplying unnecessary detail to HMRC.

“The change will mean that only around 15% of estates will need to complete some form of Inheritance Tax return.

“The challenge for HMRC will be to design a process that meets that aim and is fit for purpose in only nine months.”

Get in touch

We can help with your Inheritance Tax planning; give us a call today on 01483 205890.

Back to News Index

« Read Previous