Once termed a voluntary tax, due to the myriad of options available to legitimately avoid its payment, successive changes in regulation have made it harder for the wealthy to avoid Inheritance Tax, yet much can still be done.
Inheritance Tax raises relatively little for the Treasury but remains a political hot potato. As such it is perhaps unsurprising that the Office for Tax Simplification, set up by the Coalition in July 2010, is rumoured to be considering wide-ranging changes that could provide a significant boost to Treasury coffers with minimal political fallout (based on the small numbers that would be affected). Some protection may be afforded by the fact that many of those who would be called upon to ratify any proposal would themselves be affected but it would be unwise to rely on this.
Whilst we would never advocate acting in haste if you are considering how you may begin the process of passing your wealth to your children or grandchildren in the most tax efficient way then it would seem prudent to seek early advice.
We would be pleased to discuss the options available with you and, where appropriate, your professional advisers, taking full account of your personal circumstances and desired outcome.
The Financial Conduct Authority does not regulate Will writing or Tax advice.