The CIOT has responded to the consultation on reforms to IHT agricultural property relief and business property relief concerning their application in relation to trusts.
The key points raised in the response include the concern that the proposals add complexity to the existing system raising questions about whether the increased compliance and detailed valuations required are justified by the expected revenue.
Because this is a Stage 2 consultation it is also noted that the Tax Consultation Framework 2011 has not been followed. Had the full framework starting with Stage 1 been followed many of the difficulties professional bodies have identified could have been avoided.
Other key concerns raised by the CIOT include:
the need to simplify the operation of the £1m allowance for individuals by making it transferable between spouses aligning it with the IHT nil-rate band (NRB);
the disadvantage to married...
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The CIOT has responded to the consultation on reforms to IHT agricultural property relief and business property relief concerning their application in relation to trusts.
The key points raised in the response include the concern that the proposals add complexity to the existing system raising questions about whether the increased compliance and detailed valuations required are justified by the expected revenue.
Because this is a Stage 2 consultation it is also noted that the Tax Consultation Framework 2011 has not been followed. Had the full framework starting with Stage 1 been followed many of the difficulties professional bodies have identified could have been avoided.
Other key concerns raised by the CIOT include:
the need to simplify the operation of the £1m allowance for individuals by making it transferable between spouses aligning it with the IHT nil-rate band (NRB);
the disadvantage to married...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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