POSSIBLE INHERITANCE TAX CHANGESApr 19 2021
The OTS has suggested simplifying IHT on lifetime gifts including reducing the period of potential exemption from seven to five years. Such a change would mean that the donor would be required to survive for five years following a gift for the transfer to be exempt from IHT.
The OTS also suggested that the conditions for Business Property Relief might be tightened up by aligning the rules with the definition of a trading company for CGT. This relief currently provides 100% relief on the transfer of shares in an unquoted company. The suggested change would mean that more transfers of shares would potentially be liable to inheritance tax and may require a careful review of your plans if you are looking to pass on your business.
MMGA is here to help you make sense of any upcoming changes, please get in contact for further information.