23 February 2018
Following on from our blog of 5 February on the request from the Chancellor that the Office of Tax Simplification (OTS) carry out a review of aspects of Inheritance Tax (IHT), this recent letter from the OTS gives an indication on the scope of the review.
As stated, the overall aim is to ‘identify opportunities and develop recommendations for simplifying IHT.’ As far as farming businesses are concerned, the most important aspects of the scope of the review for tax and succession planning are the following two points:
- complexities arising from the reliefs and their interaction with the wider tax framework; and
- the scale and impact of any distortions to taxpayers’ decisions, investments, asset prices or the timing of transactions because of the IHT rules, relevant aspects of the taxation of trusts, or interaction with other taxes such as Capital Gains Tax.
This review is therefore sure to touch on the very reliefs that farmers rely on when succession planning in a tax efficient manner.
The OTS is expected to publish its report in the Autumn of 2018, which is not far away, meaning that there is no time like the present to review your succession planning. If are thinking of retiring and passing the business onto the next generation, contact your local expert or your usual UHY adviser.
Alternatively, fill out our contact form here to get in touch.