The new DOTAS hallmark for inheritance tax

Lynne Rowland

Speed read

The new rules for the disclosure of tax avoidance schemes (DOTAS) in relation to inheritance tax (IHT) planning introduced from 1 April 2018 are much wider in scope than the previous rules. The new rules introduce two conditions and three tests to help determine whether a proposal or arrangement should be notifiable, with a practitioner having to decide on whether something needs to be disclosed based on what an informed observer would conclude if they had full information. If an informed observer thinks tax planning is contrived or abnormal, the planning is disclosable to HMRC. There is a narrow exception for an ‘established practice’; however, any planning that involves the use of anything other than basic IHT exemptions will need to be reviewed and possibly disclosed.

If you are not a subscriber, subscribe now to read this content.

If you are already a subscriber, sign in

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this article in full.