Posted by James McNeile, Partner
On 1 September 2016 Withy King LLP merged with Royds LLP. The trading name for the merged firm is Royds Withy King. All content produced prior to this date will remain in the name of the firms pre-merger.
Think tank suggests IHT review may be overdue
The debate has reopened about whether the Government needs to consider a root and branch review of Britain’s Inheritance Tax (IHT) system.
Paul Johnson, who heads up the Institute for Fiscal Studies, one of the UK’s most influential think tanks, said that the levy remained “incredibly unpopular” with a sizeable portion of the public and said there was a compelling argument for change.
“I certainly think that there’s a case for reviewing how the whole thing works,” he told the Daily Telegraph.
“I’m not aware of…a government-sponsored review since the old capital transfer tax was turned into Inheritance Tax some time in the early 1980s.There have been some changes, but there hasn’t been any substantive reform to it for thirty years.”
The MP David Davies, a one-time candidate for the Conservative leadership, said: “I’ve always thought that this is a flawed tax and a review of it is certainly worthwhile.”
Discussions about a possible complete overhaul of IHT rules have been fuelled by recent suggestions that plans to change the current thresholds may not benefit as many families as originally hoped.
Further debate was triggered following the publication, earlier this week, of the Prime Minister’s income and tax payments, which suggest that David Cameron may stand to benefit from a £200,000 gift from his mother – which could allow him to legally reduce his IHT liabilities.
For legal advice on Inheritance Tax (IHT) rules, please contact Tony Millson and Deanna Hurst in Royds’ Private Client team.